ISLAMABAD – A multibillion-rupee deal appeared set to reshape future of Pearl Continental (PC) Hotels, but an unexpected twist emerged as PC Hotels’ operator, Pakistan Services Limited, said it was neither informed of nor involved in restructuring agreement between Fauji Foundation and Thatta Cement.
Amid the buzz over deal, Pakistan Services Limited (PSL) distanced itself from restructuring agreement signed between Fauji Foundation and Thatta Cement, raising new questions about future control of one of country’s most prominent hospitality businesses.
The unexpected development comes just days after Fauji Foundation acquired 19.70% stake in Pakistan Services Limited for Rs6.55 billion, adding another major player to a complex corporate dispute involving billions of rupees, powerful investors and ongoing legal proceedings.
The company that owns and operates the Pearl Continental hotel chain, said that it had neither been officially informed about nor participated in the definitive agreement between Thatta Cement Company Limited and Fauji Foundation. The clarification came only 24 hours after Thatta Cement publicly confirmed signing the agreement, marking a significant development in efforts to restructure the hotel operator.
Thatta Cement informed Pakistan Stock Exchange that it had entered into a definitive agreement with Fauji Foundation concerning the proposed restructuring of Pakistan Services Limited. The company described the agreement as an important step toward reorganising PSL, although its implementation would depend on obtaining the required corporate, regulatory and other approvals.
However, the announcement took an unexpected turn when PSL issued its own clarification the following day. In a letter signed by Company Secretary Muhammad Amir, the hotel operator maintained that it had received no official notification regarding the execution of the agreement.
PSL confirmed that it was not a party to the agreement, creating uncertainty over the company’s direct involvement in the proposed restructuring. The company assured investors that any material developments would be communicated to the stock exchange once they became known.
The restructuring announcement follows a major investment by Fauji Foundation earlier this month. Pindi-based foundation and diversified business group purchased 6,406,797 voting shares of Pakistan Services Limited at Rs1,022.42 per share. The acquisition was valued at approximately Rs6.55 billion, equivalent to around $23.7 million at the exchange rates reported at the time.
The transaction secured Fauji Foundation a 19.70% voting interest in the hotel operator, significantly strengthening its position in Pakistan’s hospitality sector. In November 3 filing, PSL confirmed that the newly acquired shares represented Fauji Foundation’s entire holding following the transaction.
The latest developments are part of a broader contest over Pakistan Services Limited that intensified during 2025, when several large share transactions reshaped its ownership structure.
In July 2025, AKD Group Holdings (Private) Limited acquired a 27.95% stake in PSL for more than Rs6.36 billion. Around same time, businessman Dawood Jan Mohammad purchased approximately 28% of the company’s voting shares at Rs700 apiece. The ownership landscape changed further in October 2025 when Thatta Cement entered the picture by acquiring approximately 9.1 million shares, representing nearly 28% of PSL’s voting equity.
That transaction was valued at roughly Rs6.45 billion to Rs6.47 billion, with a purchase price of Rs710 per share. These investments triggered a major shift in PSL’s shareholder landscape, with large blocks of voting shares changing hands during a relatively short period.
The reported transactions involved stakes collectively exceeding half of PSL’s voting equity at different points, although their percentages cannot simply be combined without accounting for subsequent transfers and ownership changes. The rapid accumulation of substantial shareholdings also intensified questions about the company’s future management and corporate control.
The ownership dispute eventually entered the legal arena, with proceedings initiated before the Islamabad High Court. Among the matters linked to the controversy was Companies Original No. 17 of 2025, involving questions surrounding shareholder rights, corporate governance and management control.
Who will own PC Hotels Chain as Fauji Foundation, Thatta Cement reach Major Agreement?
