Thatta Cement Confirms In-Principle Understanding
Thatta Cement Company Limited has formally informed the Pakistan Stock Exchange that it has reached an in-principle understanding regarding the proposed restructuring of Pakistan Services Limited.
The disclosure, dated September 10, 2026 and signed by Chief Executive Officer Kamran Munir Ansari, was issued under clause 5.6.1 of the PSX Regulations and Section 96 of the Securities Act 2015.
The company said the understanding remains subject to the finalisation of definitive agreement(s). Once completed, those agreements will be communicated to the Exchange.
The notice, however, does not disclose the proposed structure, specific assets, commercial terms or the identity of any other party involved in the discussions.
Filing Confirms Talks, Not a Hotel-by-Hotel Split
Pakistan Services Limited is the listed owner and operator of the Pearl Continental hotel chain. It also franchises the Pearl Continental brand and operates a smaller budget hotel in Lahore.
Thatta Cement’s disclosure confirms that discussions have moved beyond market speculation toward a formal understanding. It does not, however, confirm that individual Pearl Continental hotels have been allocated to different parties.
This distinction is important because Pakistan Services itself had told the Exchange days earlier that it had not received information regarding the reported arrangement and had not been informed by any shareholder.
As a result, reports about specific hotel transfers should still be treated as unconfirmed until definitive agreements are formally disclosed.
How the Pakistan Services Ownership Dispute Started
The current dispute goes back to July 2025, when two sizeable blocks of voting shares in Pakistan Services changed hands within a short period.
AKD Group Holdings, along with a related entity, acquired approximately 27.95% of Pakistan Services at Rs700 per share. The transaction was valued at more than Rs6.36 billion.
Around the same time, Dawood Jan Muhammad acquired roughly 28% of the voting shares at a similar price.
Together, the two holdings represented close to 56% of voting control.
The Hashwani Group, which had taken control of Pakistan Services in 1985, challenged the transactions and subsequently described them as a hostile takeover. The dispute eventually moved into litigation.
Thatta Cement Enters the Dispute
Thatta Cement became directly involved in October 2025 when it purchased 9,107,800 voting shares of Pakistan Services, representing approximately 28% of the company, at Rs710 per share.
The transaction was worth roughly Rs6.45 billion to Rs6.47 billion.
The shares were acquired from Dawood Jan Muhammad, whose holding fell to zero following the transaction. Thatta Cement subsequently sought fresh elections for the Pakistan Services board.
The Islamabad High Court later suspended notices for those elections. The court also restricted the sale or transfer of the disputed shares and barred the new shareholders from interfering in the company’s day-to-day management.
In February 2026, Pakistan Services deferred its director elections in accordance with the court’s directions, leaving the existing shareholding and board structure in place.
Reported Settlement Plan Remains Unconfirmed
Over the past week, market reports have pointed to a possible out-of-court settlement involving a memorandum of understanding.
According to the reported outline, PC Karachi and PC Rawalpindi could go to Thatta Cement, while PC Lahore, PC Bhurban and PC Muzaffarabad could be transferred to Fauji Foundation.
PC Peshawar does not appear in that reported arrangement because it has already been sold separately to Serena Hotels.
However, none of these reported transfers has been completed, and Thatta Cement’s latest PSX filing does not confirm the hotel-by-hotel allocation.
The reported settlement, therefore, remains a developing story rather than a completed transaction.
What a Final Deal Could Mean
If a restructuring agreement is ultimately completed, it could bring an end to a year-long dispute over control of Pakistan Services and its valuable hotel assets.
Several important issues would still need to be resolved, including valuations, transaction structure, regulatory approvals and the legal status of the disputed shareholding.
The court’s directions will also remain relevant until any settlement receives the necessary legal clearance.
Investors Await Definitive Agreements
For shareholders, the next meaningful development will be the definitive agreements referred to in Thatta Cement’s PSX notice.
Until those documents are filed, Pakistan Services remains the owner and operator of the Pearl Continental hotel chain, while the court-imposed status quo concerning management continues to apply.
The stock’s recent movement also highlights the sensitivity surrounding the dispute. Shares fell from a 52-week high of Rs1,635 to around Rs799 during the ownership battle before recovering to approximately Rs830.
Thatta Cement’s latest disclosure is significant because it provides the first official confirmation that a restructuring path is being discussed.
But it does not yet confirm the reported split of Pearl Continental hotels between Thatta Cement and Fauji Foundation.
The definitive agreements will determine whether the reported settlement becomes a completed transaction.