Thatta Cement, Fauji Foundation sign restructuring deal for Pearl Continental owner

Thatta Cement Company Limited has signed a definitive agreement with Fauji Foundation for the proposed restructuring of Pakistan Services Limited (PSL), the company that owns and manages the Pearl Continental (PC) Hotels chain.

The cement producer disclosed the agreement in a filing with the Pakistan Stock Exchange on Wednesday. The deal remains subject to the required corporate, regulatory and other necessary approvals.

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

Fauji Foundation purchased 6,406,797 voting shares on November 2, 2026, paying Rs1,022.42 for each share. The transaction brought its total holding to 19.70% of the hotel company’s voting shares.

Established as a public limited company in 1958, PSL’s main business is ownership and management of Pearl Continental hotels. It also allows franchisees to use its name and trademark and runs a smaller budget hotel property in Lahore.

PSL has seen substantial shifts in its shareholding in recent years. In July last year, AKD Group Holdings (Private) Limited bought a 27.95% stake for more than Rs6.36 billion. Dawood Jan Mohammad acquired 28% of PSL’s voting shares on the same day, at Rs700 per share.

Thatta Cement subsequently announced that it had acquired a 28% stake in PSL for Rs6.45 billion, with the shares priced at Rs710 each.

In September 2026, Thatta Cement reached an in-principle understanding on a proposed restructuring of PSL. That understanding was aimed at reaching an amicable resolution of the matter pending before the Islamabad High Court.