FFC joins Arif Habib led consortium

December 24, 2025 (MLN): Fauji Fertilizer Company Limited (FFC) has joined the consortium that has been declared the highest-ranked bidder for the privatization of Pakistan International Airlines Corporation Limited (PIACL), according to a disclosure filed with the Pakistan Stock Exchange on Wednesday.

The fertilizer manufacturer informed the bourse that its Board of Directors has approved joining the bidding consortium led by Arif Habib Corporation Limited.

The consortium also includes Fatima Fertilizer Company Limited, The Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited, and City Schools (Private) Limited.

The Privatization Commission declared the consortium as the highest-ranked bidder during the bidding process held on December 23, 2025, according to the company's regulatory filing.

This development follows FFC's earlier announcement in July 2025, when the company disclosed that the Privatization Commission had approved its Statement of Qualification.

At that time, the company's Board had authorized management to commence buy-side due diligence of PIACL to evaluate the potential acquisition.

Under the approved arrangement, FFC has been authorized by its Board to take all necessary steps to finalize and execute requisite agreements and documents with the consortium and the Privatization Commission.

The transaction will enable the company to acquire and/or subscribe to shares of PIACL, giving FFC an equity stake in the national carrier either directly or indirectly through a special purpose vehicle formed for this purpose.

The company emphasized that completion of the transaction remains subject to several conditions, including:

• Issuance of a Letter of Acceptance by the Privatization Commission to the consortium as the successful bidder in accordance with the prescribed privatization process
• Execution of definitive agreements between the parties to the transaction
• Fulfillment of all conditions precedent to closing, including relevant corporate, regulatory approvals and consents

FFC stated it will keep the Pakistan Stock Exchange informed of any further material developments regarding the transaction.

The privatization of Pakistan's flag carrier has been a long-discussed initiative as the government seeks to offload loss-making state enterprises and improve their operational efficiency through private sector management.

Yesterday, Arif Habib has won the auction for 75% shares of  Pakistan International Airlines Corporation Limited (PIAC) with a successful bid of Rs135bn.

According to the set terms of this transaction, 7.5% (Rs10.125 billion) of the bid amount will be received by the Government of Pakistan through PIAHCL.

The remaining 92.5% (Rs124.875 billion) will be invested in PIACL in the form of new equity via a Rights Issue in two tranches: two-thirds as an upfront payment (Rs83.25 billion) and one-third as the second tranche (Rs41.625 billion), to be invested within 12 months of Financial Close.

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