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Re:

Lucky Cement Authorized a Bid for PIA—but Did Not Win the Auction

Lucky Cement’s board approved participation in a consortium bid for PIA, not a completed purchase. The group offered Rs134 billion; the Arif Habib consortium won with Rs135 billion.
From TheFinanceBase Team3 min to read
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Lucky Cement’s board authorized the company to participate in Pakistan International Airlines Corporation Limited’s (PIACL) privatization as part of a consortium and to submit a financial bid, subject to transaction documents and other bid requirements. That approval was not approval of a completed purchase: the Lucky Cement-led consortium later offered Rs134 billion, while the Arif Habib-led consortium won the December 23, 2025 auction with Rs135 billion.

What did Lucky Cement’s board approve?

In a disclosure reported by Business Recorder on December 19, 2025, Lucky Cement said its board had approved participation in the PIACL privatization through a consortium. Following consortium due diligence, the board authorized submission of a financial bid, including payment of earnest money, subject to finalizing transaction documents and meeting other bid requirements.

That was authority to take part in the bidding process—not a decision that Lucky Cement had bought PIA, nor approval of a final purchase price or winning offer. The distinction matters because the auction outcome was determined later.

Who was in the consortium?

The Lucky Cement-led group comprised Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited. In November 2025, the Privatisation Commission’s board prequalified this group and three other investor parties for the divestment; prequalification allowed the parties to proceed to buyer due diligence, but did not determine the winner.

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Did Lucky Cement win the PIA privatization bid?

No. The government scheduled an open auction for 75% of PIACL on December 23, 2025. Radio Pakistan reported that the Arif Habib-led consortium won with a Rs135 billion offer. The Lucky Cement-led consortium offered Rs134 billion, and the auction’s reference price was Rs100 billion.

Consortium Reported offer Auction outcome
Arif Habib-led consortium Rs135 billion Winner
Lucky Cement-led consortium Rs134 billion Runner-up
Reference price Rs100 billion Benchmark, not a consortium bid

The Rs100 billion figure was the reference price for the auction, not an offer by a third bidder. The Rs134 billion figure was the Lucky Cement consortium’s reported offer; it should not be described as the price Lucky Cement paid.

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What happened after the auction?

Competition approval

On April 29, 2026, the Competition Commission of Pakistan announced Phase-I approval of the proposed acquisition by PIA Equity Limited. It said the transaction did not create or strengthen a dominant position in any relevant market and was not likely to substantially lessen competition. The commission also noted that other applicable laws and regulatory requirements remained in force; competition clearance alone was not the same as completion of every transaction step.

Completion and management control

An April 30, 2026 government notice described an approximately PKR180 billion expected private-sector commitment: PKR55 billion payable to the government and PKR125 billion intended as fresh equity in PIACL. Those amounts described the expected structure of the commitment, not proof that all the funds had already been paid or injected. The notice had earlier expected first closing on May 25, 2026.

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A later update from the National Assembly Standing Committee on Privatization, reported September 17, 2026 and updated October 1, said transaction documents were executed on January 29, 2026, first completion took place on June 29, 2026, and management control transferred. The committee also reported that the successful bidder intended to exercise a call option for the remaining 25%, subject to contractual requirements and a second completion. That additional stake was not described as already transferred.

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Sources and transaction timeline

  • Privatisation Commission of Pakistan: November 2025 prequalification announcement.
  • Business Recorder: Lucky Cement’s board authorization, December 19, 2025.
  • Press Information Department: planned 75% auction, December 22, 2025.
  • Radio Pakistan: auction result, December 23, 2025.
  • Competition Commission of Pakistan: Phase-I approval, April 29, 2026.
  • Press Information Department: expected investment and remaining stake, April 30, 2026.
  • National Assembly Standing Committee on Privatization: transaction status, September 17, 2026, updated October 1, 2026.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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