Fauji Foundation Enters Hospitality Sector With Rs. 6.55 Billion Stake in PC Hotels Owner - ProPakistani

Fauji Foundation has bought a 19.70 percent voting stake in Pakistan Services Limited (PSX: PSEL), the company that owns and runs the Pearl-Continental (PC) hotel chain, in a deal worth about Rs. 6.55 billion.

According to a disclosure filed with the Pakistan Stock Exchange (PSX) on November 3, Fauji Foundation acquired 6,406,797 shares on November 2 at Rs. 1,022.42 per share. These shares make up its entire holding in the company.

Pakistan Services said it received the notice in a letter from Fauji Foundation dated November 2, filed under Section 110 of the Securities Act, 2015, and the 2017 takeover regulations for listed companies.

In its disclosure, Fauji Foundation said the acquisition was made in accordance with Section 110 of the Securities Act, 2015, and Regulation 4(2) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

The foundation submitted the required disclosure to the Pakistan Stock Exchange, Pakistan Services Limited and the Securities and Exchange Commission of Pakistan.

Pakistan Services Limited subsequently informed the exchange that it had received the letter dated November 2, 2026, and requested that the information be made publicly available under the applicable regulations.

Pakistan Services Limited is the owner and operator of Pearl-Continental Hotels and other hospitality brands, including Pearl-Continental Residences, Hotel One and other hotel and hospitality businesses.

Fauji Foundation is a charitable trust established to support former servicemen and their families. The disclosure identifies the foundation as the acquirer in the share transaction.

The price is about 44 percent higher than the Rs. 710 per share Thatta Cement paid when it bought a 28 percent stake in the company in October 2025. AKD Group paid Rs. 700 per share for its 27.95 percent stake in July 2025.

The ownership dispute at Pakistan Services Limited, the operator of Pearl-Continental Hotels, dates back to July 2025, when AKD Group Holdings and its subsidiary acquired a 27.95 percent stake, followed by Thatta Cement’s purchase of a roughly 28 percent holding in October 2025.

The transactions were challenged by the Hashwani Group, which had acquired Pakistan Services in 1985, triggering legal proceedings over control of about 56 percent of the company’s voting shares.

In September 2026, reports suggested a possible out-of-court settlement under which five PC hotels could be divided between Thatta Cement and Fauji Foundation, although Pakistan Services said it had no formal knowledge of the reported plan. Fauji Foundation’s newly disclosed acquisition of 19.70 percent of PSEL’s voting shares is the latest development in the protracted ownership battle.

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