Pearl Continental: Thatta Cement Signs Agreement with Fauji Foundation for PSL Restructuring

KARACHI: Thatta Cement Company Limited has entered into a definitive agreement with Fauji Foundation regarding the proposed restructuring of Pakistan Services Limited (PSL), the owner and operator of the Pearl Continental (PC) Hotels chain.

The cement manufacturer disclosed the development in a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday.

According to the filing, the agreement is subject to the required corporate, regulatory and other necessary approvals.

The development comes days after Fauji Foundation, one of Pakistan’s largest conglomerates, acquired a 19.70% stake in Pakistan Services Limited for approximately Rs6.55 billion, equivalent to $23.7 million.

Fauji Foundation acquired 6,406,797 voting shares of PSL on November 2, 2026, at Rs1,022.42 per share, taking its total shareholding to 19.70% of the company’s voting shares.

Established in 1958, Pakistan Services Limited is a public limited company primarily engaged in owning and managing the Pearl Continental hotel chain. It also grants franchises for the use of its trademark and operates a smaller budget hotel property in Lahore.

The company has witnessed significant changes in its shareholding structure in recent years.

In July last year, AKD Group Holdings (Private) Limited acquired a 27.95% stake in PSL for more than Rs6.36 billion. On the same day, Dawood Jan Mohammad acquired 28% of the company’s voting shares at Rs700 per share.

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Subsequently, Thatta Cement Company Limited announced the acquisition of a 28% stake in PSL for Rs6.45 billion at Rs710 per share.

In September 2026, Thatta Cement reached an in-principle understanding regarding the proposed restructuring of PSL, aimed at amicably resolving a matter pending before the Islamabad High Court.

The latest agreement with Fauji Foundation marks another development in the proposed restructuring process, which remains subject to the necessary approvals.