SECP Approves PIA’s Scheme of Arrangement

The Securities and Exchange Commission of Pakistan (SECP) has approved the Scheme of Arrangement between Pakistan International Airlines Corporation Limited (PIA) and PIA Holding Company Limited (HoldCo). Earlier this year, the Federal Cabinet approved the legal segregation plan of PIA and the Scheme and, inter alia, directed the Aviation Division, PIA, and HoldCo to undertake the required corporate and regulatory actions to implement the Scheme. Last month, the scheme was also approved by the shareholders and creditors of PIA. The restructuring entails legal separation of PIA’s core aviation business from its non-core activities and the transfer of its non-aviation-related business from PIA into Holdco. The approval of the scheme paves the way for Holdco to own 100% shareholding in PIA and simultaneous issuance and allotment of shares by Holdco to the qualifying shareholders of PIA.