CCOP Approves Joint Venture Model for Roosevelt Hotel Privatization

In a significant advancement of the Government’s privatization agenda, two major decisions were taken by the Privatization Commission Board and the Cabinet Committee on Privatization (CCOP), marking steady progress in key strategic transactions.

The Privatization Commission (PC) Board, in its 237th meeting held under the chairmanship of Adviser to the Prime Minister on Privatization and Chairman, Privatization Commission,  Muhammad Ali, approved the prequalification of four Interested Parties for the divestment of Pakistan International Airlines Corporation Limited (PIACL).

The Board reviewed the recommendations of the Prequalification Committee based on the evaluation of Statements of Qualification (SOQs) submitted by five prospective investors, in line with technical, financial, and documentary requirements defined in the Request for Statement of Qualification (RSOQ).

Following thorough scrutiny, the following four Interested Parties have been prequalified, which include Consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited.

The Consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited prequalified, whereas  Fauji Fertilizer Company Limited and Air Blue (Private) Limited were also prequalified.

The prequalified parties will now proceed to the buy-side due diligence phase – a critical next step in the transparent and competitive privatization process of PIACL.

In another major development, the Cabinet Committee on Privatization (CCOP) today approved the transaction structure for the Roosevelt Hotel, New York, as proposed by the Privatization Commission Board.

Out of the three options evaluated by the Financial Advisor  – (i) outright sale, (ii) joint venture with multiple options, and (iii) long-term lease – the Joint Venture model with multiple options has been approved. This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure.