Pearl Continental owner says ‘not a party’ to Thatta Cement-Fauji Foundation restructuring deal
- Neither filing disclosed the terms, structure, or valuation of the proposed restructuring
Pakistan Services Limited, owner of Pearl Continental Hotels, denies knowledge of a definitive restructuring agreement between Thatta Cement and Fauji Foundation, despite THCCL's disclosure, indicating a major corporate shake-up.
- PSL's denial of the restructuring agreement.
- Fauji Foundation's recent acquisition of a significant stake in PSL.
- Recent changes in Pakistan Services Limited's shareholding.
Pakistan Services Limited, which owns and manages the Pearl Continental (PC) Hotels chain, said on Thursday it was not a party to, and had not been notified of, a definitive agreement between Thatta Cement Company Ltd (THCCL) and Fauji Foundation (FF) over its proposed restructuring.
The response came a day after Thatta Cement disclosed to the Pakistan Stock Exchange that it had entered into a definitive agreement with Fauji Foundation in connection with the proposed restructuring of PSL.
Pakistan Services said, “It has neither been notified of nor is it aware of the execution of any definitive agreement between THCCL and FF in connection with the proposed restructuring of the company”.
“The company, therefore, is not a party to the definitive agreement as referred to in the aforesaid disclosure,” it said.
Thatta Cement, in its filing on Wednesday, had said: “Thatta Cement Company Limited has entered into a definitive agreement with Fauji Foundation in relation to the proposed restructuring of Pakistan Services Limited, subject to the requisite corporate, regulatory and other necessary approvals.”
Neither filing disclosed the terms, structure, or valuation of the proposed restructuring.
The development came days after Fauji Foundation, one of Pakistan’s largest conglomerates, acquired a 19.70% stake in PSL for approximately Rs6.55 billion, i.e. $23.7 million.
Fauji Foundation acquired 6,406,797 voting shares of Pakistan Services on November 2, 2026, at Rs1,022.42 per share, taking its total shareholding in the company to 19.70% of its voting shares.
Pakistan Services Limited was established in 1958 as a public limited company. The company’s primary business involves owning and managing the “Pearl Continental” chain of hotels. It also grants franchises for the use of its trademark and name and operates a smaller budget hotel property in Lahore.
The company has observed significant changes in shareholding in recent years.
Last year in July, AKD Group Holdings (Private) Limited acquired a 27.95% stake in PSL for over Rs6.36 billion. On the same day, Dawood Jan Mohammad acquired 28% of PSL’s voting shares at Rs700 per share.
Following this, Thatta Cement Company Limited announced its acquisition of a 28% stake in PSL for Rs6.45 billion (Rs710 per share).
In September 2026, Thatta Cement Company Limited reached an in-principle understanding for a proposed restructuring of PSL to amicably resolve the matter pending before the Islamabad High Court.
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