Lucky Cement Clarifies Position on PIA Acquisition

Lucky Cement Limited, a major Pakistani conglomerate, has issued a statement clarifying its involvement in the potential acquisition of Pakistan International Airlines (PIACL). Despite being part of a consortium selected for due diligence, the company stated that it has not yet made any firm commitment to acquire the airline.

In a notice shared with the Pakistan Stock Exchange (PSX) this Wednesday, the cement manufacturer specified that any forward movement on the deal hinges on the results of the due diligence process and the attainment of necessary approvals.

The notice explained, “Lucky Cement Limited, in collaboration with other significant corporate entities—Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited—established a consortium and presented an Expression of Interest and Statement of Qualification for the possible acquisition of a 51% to 100% equity stake, along with management control, in Pakistan International Airlines Corporation Limited (PIACL), which the Government of Pakistan is offering for divestment through a privatization initiative.”

Lucky Cement stated that the Privatisation Commission has pre-qualified the consortium, alongside other interested parties, to conduct thorough financial, technical, and legal due diligence on PIACL.

The government announced on Tuesday that it had approved four entities to potentially submit bids for a stake in PIA, which is currently facing financial difficulties.

One of the bidding groups consists of a consortium comprising Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures.

Another group is spearheaded by the investment firm Arif Habib Corp and includes Fatima Fertilizer, The City School, a private education provider, and Lake City Holdings, a real estate company.

Furthermore, Fauji Fertilizer Company and Pakistani airline Airblue have received approval to bid for PIA.

The government intends to offer the equity stake in PIA through a competitive bidding process.

Lucky Cement clarified, “For the sake of clarity, neither the company nor the consortium has entered into any binding agreement with any party concerning the acquisition of equity in PIACL.”

“Any such commitment will only be made after satisfactory completion of due diligence, receipt of all required corporate and regulatory approvals, and a determination that the transaction is commercially viable,” it added.

The company emphasized that its current intention, through the consortium, is solely to “undertake a comprehensive due diligence exercise and assess the feasibility of the potential acquisition opportunity.”

Pakistan aims to divest a 51-100% stake in the struggling national airline to generate revenue and restructure financially strained state-owned enterprises, aligning with a $7 billion program supported by the International Monetary Fund.