Thatta Cement, Fauji Foundation sign agreement on Pearl-Continental owner’s restructuring

Thatta Cement Company Limited has signed a definitive agreement with Fauji Foundation concerning the proposed restructuring of Pakistan Services Limited (PSL), the owner of the Pearl-Continental hotel chain.

The agreement remains subject to the required corporate, regulatory and other approvals, according to a material information disclosure submitted by Thatta Cement to the Pakistan Stock Exchange on November 11.

The development follows Fauji Foundation’s acquisition of a 19.70% stake in Pakistan Services for approximately PKR 6.55 billion (USD 23.7 million).

Fauji Foundation acquired 6,406,797 voting shares in Pakistan Services on November 2, 2026, at PKR 1,022.42 per share, taking its total holding to 19.70% of the company’s voting shares.

Established in 1958, Pakistan Services owns and manages the Pearl-Continental hotel chain. Its business also includes granting franchises for the use of its brand name and operating a budget hotel in Lahore.

The company’s ownership structure has undergone significant changes over the past year.

In July 2025, AKD Group Holdings (Private) Limited acquired a 27.95% stake in Pakistan Services for more than PKR 6.36 billion. On the same day, Dawood Jan Mohammad acquired 28% of the company’s voting shares at PKR 700 per share.

Thatta Cement subsequently announced the acquisition of a 28% stake in Pakistan Services for PKR 6.45 billion, at PKR 710 per share.

In September 2026, Thatta Cement reached an in-principle understanding on a proposed restructuring of Pakistan Services to amicably resolve a matter pending before the Islamabad High Court.

The latest agreement with Fauji Foundation marks another step in the proposed restructuring of the hotel operator. However, the company has not disclosed the specific terms of the agreement or how the hotel assets will be divided.