Pakistan Services Limited, which owns and operates the Pearl Continental (PC) hotel chain, could divide five of its hotel properties between Thatta Cement and Fauji Foundation under a proposed out-of-court settlement, according to a report by Nukta.
The proposed settlement follows more than a year of legal disputes over a roughly 56 percent voting stake in Pakistan Services. The parties have signed a memorandum of understanding (MoU), but the arrangement has not been formally announced, and the proposed transfers have not been completed, the report notes.
According to the report, under the proposed deal, PC Karachi and PC Rawalpindi would be transferred to Thatta Cement, while PC Lahore, PC Bhurban and PC Muzaffarabad would go to Fauji Foundation. PC Peshawar is not included in the settlement, as it was previously sold separately to Serena Hotels.
Pakistan Services has been at the center of an ownership dispute since July 2025, when AKD Group Holdings and Muhammad acquired holdings that together represented nearly 56 percent of the company’s voting shares. Hashwani Group, which acquired Pakistan Services in 1985, challenged the transactions and later described the development as a hostile takeover.
Thatta Cement subsequently acquired about 28 percent of Pakistan Services in October 2025 and sought fresh elections for the company’s board. The Islamabad High Court suspended the proposed election and restricted the sale or transfer of the disputed shares while also barring the new shareholders from interfering in the company’s day-to-day management.
The proposed settlement could bring an end to the ownership dispute if completed, but its timing and final terms remain unclear. Pakistan Services shares have also moved sharply during the dispute, with the stock falling from a 52-week high of Rs. 1,635 to Rs. 799 before recovering to around Rs. 830.
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