Pakistan Services says it is unaware of Thatta Cement-Fauji Foundation restructuring agreement

Pakistan Services Limited (PSL), the owner and operator of Pearl-Continental Hotels, has said it has neither been notified of nor is aware of a definitive agreement between Thatta Cement Company Limited and Fauji Foundation on its proposed restructuring, and that it is not a party to it.

In a notice to the Pakistan Stock Exchange dated November 12, PSL responded to Thatta Cement’s November 11 disclosure that it had entered into a definitive agreement with Fauji Foundation in relation to the proposed restructuring of PSL, subject to the requisite corporate, regulatory and other approvals.

PSL said it will make the requisite disclosures to the exchange upon any development, or upon becoming aware of any information warranting disclosure.

Background

In September, PSL told the PSX that a proposed restructuring was being negotiated to amicably resolve the matter pending before the Islamabad High Court. Earlier this month, Fauji Foundation disclosed that it had bought a 19.70% stake in PSL for about PKR 6.55 billion.

Nukta reported in September, citing sources, that the parties had signed a memorandum of understanding on a proposed settlement under which six PC hotels would be divided between Thatta Cement and Fauji Foundation. The settlement had not been announced at that time.