Pakistan International Arlines (PIA) : News / Updates

[Bilal]

Arif Habib increased it to 121 billion. Lucky at 120.5 billion.

 

[Meengla]

Arif Habib increased it to 121 billion.

I presume part of the Habib Bank group of businesses??

 

[Bilal]

I presume part of the Habib Bank group of businesses??

No different group. Same group was part of the reversed steel mills privatization in the consortium. Now it’s leading this consortium.

 

[Ali_Baba]

So far, the Arif Habib group has bid the most: Rs. 115 billion.
Proceedings in Engish.

So, about $1billion. I am surprised it is worth even that given its liabilities and excess employees.

Being private, they can fire people more easily and get rid of all the political employees and make it function like a normal airline does.

 

[Bilal]

So, about $1billion. I am surprised it is worth even that given its liabilities and excess employees.

No bro less than half a billion dollars. Employees have already been cut down to 7-8 K and after 1 year they are free to let go more.

In between they can offer severance deals.

 

[Meengla]

So, about $1billion. I am surprised it is worth even that given its liabilities and excess employees.

Basically sounds like stopping the extreme abuse and bleeding the money, which has been going on for decades; my guess four decades. Until today, the the privatization couldn't happen due to political pressure, especially by PPP.

 

[Ali_Baba]

No bro less than half a billion dollars. Employees have already been cut down to 7-8 K and after 1 year they are free to let go more.

In between they can offer severance deals.

Ah yes - google betrayed me and used INR Rs and not PKR Rs! thanks!



fixed my query.

 

[Bilal]

Basically sounds like stopping the extreme abuse and bleeding the money, which has been going on for decades; my guess four decades. Until today, the the privatization couldn't happen due to political pressure, especially by PPP.

Remember this is for 75% shares. They will have option to take remaining 25% by the same price ratio within 90 days. Lucky I believe was interested in 100%.

 

[Bilal]

Ah yes - google betrayed me and used INR Rs and not PKR Rs! thanks!

View attachment 166610

fixed my query.

Now it’s 121 by Arif Habib and 120.25 by Lucky. Bidding continues.

 

[Meengla]

Remember this is for 75% shared. They will have option to take remaining 25% by the same price ratio within 90 days. Lucky I believe was interested in 100%.

This sale is a 'template' or a harbinger of things to come. You will see that. The canals the Sindhis needless opposed some months ago. The dams. Other privatization drives. And more.
The way the Parliament is intentionally structured right now, even PTI has a chance to play its leverage though I won't go into the politics here.

 

[Fatman17]

@Bilal
FYI

 

[Bilal]

This sale is a 'template' or a harbinger of things to come. You will see that. The canals the Sindhis needless opposed some months ago. The dams. Other privatization drives. And more.
The way the Parliament is intentionally structured right now, even PTI has a chance to play its leverage though I won't go into the politics here.

No it’s not that simple. Yes privatization is now broadly accepted but business viability is key for investors.

PIA with routes opened, tax incentives, reduced employees and liabilities removed is an attractive viable business. But let’s say DISCOs are a very tough sell, there the model might be different.

 

[Bilal]

@Bilal
FYI

Thank you. Can we move those posts here please.

 

[Bilal]

This sale is a 'template' or a harbinger of things to come. You will see that. The canals the Sindhis needless opposed some months ago. The dams. Other privatization drives. And more.
The way the Parliament is intentionally structured right now, even PTI has a chance to play its leverage though I won't go into the politics here.

BTW the target is 3 DISCOs this FY. Model might be different or same, remains to be seen.

 

[Meengla]

No it’s not that simple. Yes privatization is now broadly accepted but business viability is key for investors.

PIA with routes opened, tax incentives, reduced employees and liabilities removed is an attractive viable business. But let’s say DISCOs are a very tough sell, there the model might be different.

I tend to defer 'business' related discussions to others. I think I am better at connecting the dots and I have been saying that the 'Danda' is going to fall on everyone's heads. It has just fallen on the PPP and more 'Danda' are coming: 'Perform or Perish'.
You will all see that.