By Farooq Faisal Khan
An emergency meeting of the Board of Directors of Fauji Fertilizer Company (FFC) has been convened today (Wednesday) to approve the company’s participation in the Arif Habib-led consortium, which submitted the successful bid for Pakistan International Airlines (PIA).
The consortium won the bidding process on Tuesday with an offer of Rs135 billion for the national flag carrier. The privatisation process of PIA generated strong interest within the financial and corporate sectors, with multiple consortiums forming and dissolving amid intense negotiations, reminiscent of political maneuvering.
According to corporate sources, an initial consortium comprising the Arif Habib Group, Lucky Group and FFC was under consideration. However, differences emerged over control of PIA, prompting FFC to step back. Subsequently, the Arif Habib Group and the Lucky Group appeared separately with their own consortiums.
On Tuesday, FFC gave a green signal to join the Arif Habib consortium, while the AKD Group also extended its support to the same group. Senior figures in the corporate sector revealed that partners within the Arif Habib consortium were willing to raise the bid as high as Rs160 billion. However, the Lucky Group was unable to move beyond the Rs135 billion offer.
Details regarding the shareholding structure of the consortium have not yet been disclosed. The consortium includes the Arif Habib Group and Fatima Fertilizer, both chaired by Arif Habib. The Sehgal family, owners of The City School, is also part of the group. Major City Holding stakeholder Gohar Ejaz, a prominent real estate and textile industry tycoon, is also associated with the consortium.
Sources say Gohar Ejaz played a key role in the formation of the consortium and in persuading FFC to rejoin after its initial withdrawal. Ejaz previously served as a federal minister in the caretaker cabinet and is known for his strong business ties with the Sharif family and President Asif Ali Zardari.
