Extra Ordinary General Meeting of PIAA is scheduled on 20th Apr’24, as per its notice to PSX, where the members of the company are expected to approve corporate restructuring/reorganization of the company, including the bifurcation/separation of the business into two segments; i) Core Undertaking (PIA), and ii) Non-Core Undertaking (Holdco).

We released an update regarding the divestment of the stake in PIAA on 11th Jan’24. Please see the full report here (Divestment of 51% stake approved by Privatization Commission).

The company shared the Scheme of Arrangement with the board of directors on 25th Mar’24, where PIA Holding Company Limited (“Holdco”) and the Board of Directors of the PIA have decided to enter into an arrangement with Holdco for the corporate restructuring/reorganization of the PIA and Holdco. The board of directors approved the Scheme of Arrangement on 28th Mar’24.

The non-core undertakings (hospitality, investments, real estate, and others) will be transformed into the PIA Holding Company Limited (Holdco) by shifting the assets, business, rights, properties, investments, liabilities, benefits, powers, contracts, authorizations, obligations, etc., while PIA will retain the core undertaking (aviation business).

To protect the existing shareholders, their equity holdings in PIAA will be void and replaced with fresh shares issued in Holdco at the same percentage.

The notice further states that the rearrangement of assets and liabilities via the Scheme will not alter the valuation of shares held by current shareholders of PIA, given that all the company’s assets and liabilities, along with subsidiaries, will continue to be under the umbrella of Holdco as part of the scheme.

Courtesy – AHL Research