Fauji Foundation Acquires 19.7% Stake in Pearl-Continental Owner for Rs. 6.55 Billion

Fauji Foundation has acquired a 19.70 percent voting stake in Pakistan Services Limited (PSX: PSEL), the company that owns and operates the Pearl-Continental hotel chain, for about Rs. 6.55 billion. The acquisition was disclosed to the Pakistan Stock Exchange on November 3, with the foundation purchasing 6,406,797 shares on November 2 at Rs. 1,022.42 per share.

The disclosure, filed under Section 110 of the Securities Act, 2015, and Regulation 4(2) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, was submitted to the PSX, Pakistan Services Limited, and the Securities and Exchange Commission of Pakistan. Pakistan Services confirmed receiving the notice and requested that the information be made public in accordance with applicable regulations.

Fauji Foundation is a charitable trust established to support former servicemen and their families. This marks the foundation's entry into the hospitality sector, as Pakistan Services Limited owns and operates Pearl-Continental Hotels, Pearl-Continental Residences, Hotel One, and other hospitality brands.

The purchase price of Rs. 1,022.42 per share is approximately 44 percent higher than the Rs. 710 per share paid by Thatta Cement in October 2025 for a 28 percent stake, and higher than the Rs. 700 per share paid by AKD Group for its 27.95 percent stake in July 2025.

The ownership of Pakistan Services Limited has been contested since July 2025, when AKD Group Holdings and its subsidiary acquired a 27.95 percent stake, followed by Thatta Cement's purchase of about 28 percent in October 2025. The Hashwani Group, which acquired the company in 1985, challenged these transactions, leading to legal proceedings over control of roughly 56 percent of the voting shares.

In September 2026, reports suggested a possible out-of-court settlement that would divide five PC hotels between Thatta Cement and Fauji Foundation, though Pakistan Services said it had no formal knowledge of the plan. Fauji Foundation's newly disclosed acquisition is the latest development in the protracted ownership battle.