Karachi: Fauji Fertilizer Company Ltd. (FFC) announced that its Board of Directors has approved the submission of an Expression of Interest (EOI) for the potential acquisition of stakes in Pakistan International Airlines Corporation Ltd. (PIACL). This decision marks a significant step toward FFC's involvement in the privatization process of the national flag carrier.

The board meeting, held on June 13, 2025, concluded with approval for FFC to submit prequalification documents to the Privatization Commission. This move aligns with FFC's strategy to undertake a comprehensive due diligence exercise, which is a standard procedure in acquisition processes.

PIACL, the leading player in Pakistan's domestic aviation sector with a market share of 19%, operates a fleet of 34 aircraft. In a restructuring effort last year, the government transferred PIACL's net liabilities, totaling PkR654 billion, and its non-core assets to PIA Holding Company Ltd., effectively reducing PIACL's debt burden. The airline reported an equity value of PkR3.6 billion at the end of 2024 and achieved an EBITDA-positive status in the same year.

In a previous privatization attempt, the Privatization Commission set a minimum bid price of PkR85 billion for PIACL. FFC, with cash and short-term investments worth PkR147 billion as of March 2025, is well-positioned financially to participate in the bidding process.

From an investment perspective, analysts have a 'Buy' recommendation on FFC, with a target price of PkR583 per share by December 2025. This outlook is driven by FFC's strategic amalgamation with FFBL, which is expected to create synergies and maintain elevated gross margins due to the availability of cheaper gas for FFC's base plants.

The potential acquisition of PIACL by FFC is being closely watched by industry observers, as it could lead to significant changes within Pakistan's aviation sector.