Thatta Cement moves towards restructuring of Pakistan Services Limited

Thatta Cement Company Limited (THCCL) has reached an in-principle understanding for the proposed restructuring of Pakistan Services Limited (PSL).

The listed cement maker that also holds ownership of Thatta Power (Private) Limited disclosed the development via a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“Thatta Cement Company Limited has reached an in-principle understanding regarding the proposed restructuring of Pakistan Services Limited, subject to finalisation of definitive agreement(s), which will be duly communicated to the Exchange in due course,” said the company.

Meanwhile, Pakistan Services Limited (PSL) was established in 1958 as a public limited company under the Companies Act, 1913 (now Companies Act, 2017).

The company’s primary business involves owning and managing the chain of Pearl Continental Hotels. It also grants franchises for the use of its trademark and name “Pearl Continental” and operates a smaller budget hotel property in Lahore.

However, in recent months, several significant changes in shareholding and subsequent legal developments have occurred.

On July 14, 2025, AKD Group Holdings (Private) Limited acquired a 27.95% stake in PSL for over Rs6.36 billion. Around the same time, Dawood Jan Mohammad acquired 28% of PSL’s voting shares at Rs700 per share.

Subsequently, on October 14, 2025, Thatta Cement Company Limited announced its acquisition of a 28% stake in PSL for Rs6.45 billion (Rs 710 per share).

On February 24, 2026, Pakistan Services Limited deferred the elections of its directors following directives from the Islamabad High Court (IHC). The court suspended operations related to the acquisition of shares and elections, mandating a status quo concerning the company’s shareholding structure, the composition of its Board of Directors, and its control and management.