Pakistan Services Denies Knowledge of Thatta Cement-Fauji Foundation Deal

Pakistan Services Limited (PSX: PSEL), which owns and operates the Pearl Continental hotel chain, has stated that it is neither a party to nor aware of a definitive agreement between Thatta Cement Company Limited (THCCL) and Fauji Foundation (FF) concerning its proposed restructuring. In a notice to the Pakistan Stock Exchange on Thursday, the company said it had not been notified of the agreement that Thatta Cement disclosed a day earlier.

On Wednesday, Thatta Cement informed the bourse that it had signed a definitive agreement with Fauji Foundation regarding the proposed restructuring of Pakistan Services Limited. The agreement is subject to necessary corporate, regulatory, and other approvals. However, neither filing revealed the terms, structure, or valuation of the proposed restructuring.

The development follows Fauji Foundation's acquisition of a 19.70 percent stake in Pakistan Services for approximately Rs. 6.55 billion ($23.7 million). On November 2, 2026, Fauji Foundation purchased 6,406,797 voting shares at Rs. 1,022.42 per share, raising its total ownership to 19.70 percent of the company's voting shares.

Pakistan Services Limited, established in 1958, owns and manages the Pearl Continental hotel chain. Its business also includes franchising its trademark and name, as well as operating a smaller budget hotel in Lahore. The company has seen significant ownership changes in recent years. In July 2025, AKD Group Holdings acquired a 27.95 percent stake for over Rs. 6.36 billion, while Dawood Jan Mohammad acquired 28 percent of voting shares at Rs. 700 per share on the same day.

Thatta Cement later announced its acquisition of a 28 percent stake in Pakistan Services for Rs. 6.45 billion, at Rs. 710 per share. In September 2026, Thatta Cement reached an in-principle understanding regarding the proposed restructuring to amicably resolve a matter pending before the Islamabad High Court.

The clarification from Pakistan Services highlights the complexities surrounding the ownership and restructuring of one of Pakistan's most prominent hotel operators. Stakeholders are awaiting further details on the agreement and its implications for the company's future.