Blue World City Refuses to Raise Rs. 10 Billion Offer for PIA
Blue World City, a real estate developer, has declined to increase its bid of Rs. 10 billion for acquiring a majority share in Pakistan International Airlines (PIA). This bid falls significantly short of the government’s reserve price of Rs. 85 billion. The developer was given a 30-minute window to adjust its offer but opted not to raise it.
Next Steps in the Bidding Process
According to the rules, the Privatization Commission now has the authority to either declare Blue World City as the highest-ranked bidder or cancel the entire bidding process. Earlier, the Cabinet Committee on Privatization (CCoP) reviewed and endorsed the reference price for the divestment of 60% of PIA’s shares, based on the terms and conditions outlined in the bidding document.
It is noteworthy that the Privatization Commission had initially pre-qualified six bidders for the process. The parties included:
- Fly Jinnah Limited
- Air Blue Limited
- Arif Habib Corporation Limited
- Consortium Led by Y.B. Holdings (which includes Pioneer Cement Limited, Artistic Milliners Limited, ANS Capital Private Limited, and Metro Ventures Private Limited)
- Consortium Led by Pak Ethanol (comprised of AirSial Limited, Serene Airlines Private Limited, and Liberty Daharki Power Limited)
- Consortium Led by Blue World City (including Blue World Aviation and IRIS Communication Limited)
Earlier this week, only Blue World City formalized its interest ahead of the bidding date of October 31 by submitting earnest money before the October 29 deadline.
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