Thatta Cement and Fauji Foundation Sign Definitive Deal to Restructure Pearl Continental Operator

Thatta Cement Company Limited has signed a definitive agreement with Fauji Foundation covering the proposed restructuring of Pakistan Services Limited, the listed company that owns and operates the Pearl Continental hotel chain. The company disclosed the development to the Pakistan Stock Exchange in a notice dated November 11, 2026, issued under Clause 5.6.1 of the exchange's regulations and Section 96 of the Securities Act, 2015. The disclosure was signed by Thatta Cement Chief Executive Officer Kamran Munir Ansari.

The agreement follows a prolonged ownership dispute over Pakistan Services Limited. The conflict intensified in 2025 after AKD Group Holdings acquired a 27.95 percent stake and Dawood Jan Mohammad acquired another 28 percent of the company's voting shares. Thatta Cement then acquired a 28 percent stake in October 2025 for approximately Rs. 6.45 billion, setting off a legal battle over the company's ownership and management that reached the Islamabad High Court.

In September 2026, reports emerged of a proposed out-of-court settlement under which five Pearl Continental hotels could be divided between Thatta Cement and Fauji Foundation. Under that proposed split, the Karachi and Rawalpindi properties would go to Thatta Cement, while the Lahore, Bhurban and Muzaffarabad properties would go to Fauji Foundation. Thatta Cement announced an in-principle understanding on September 10, and Fauji Foundation subsequently acquired a 19.70 percent stake in Pakistan Services for approximately Rs. 6.55 billion in November.

The definitive agreement between the two parties marks the latest step in the restructuring process. Thatta Cement noted that the deal remains subject to the required corporate, regulatory and other approvals, and the final terms, including the proposed division of hotel properties, have not been disclosed.

The transaction is significant for Pakistan's hospitality and capital markets, given that Pakistan Services Limited controls one of the country's best-known hotel brands. How the restructuring proceeds, and whether the court dispute is formally resolved, will be closely watched by investors and the wider tourism sector.

Further details are expected as the parties move through the approval process and disclose the final structure of the deal to the exchange.