Thatta Cement Company Limited (THCCL) has reached an in-principle understanding regarding the proposed restructuring of Pakistan Services Limited (PSL), marking a further development in the ownership and corporate structure of the company that operates the Pearl Continental hotel chain. The proposed restructuring is not yet final, as it remains subject to the completion of definitive agreements. Thatta Cement disclosed the development through a notice submitted to the Pakistan Stock Exchange on Thursday.
In its disclosure, Thatta Cement said it had reached an in-principle understanding concerning the proposed restructuring of Pakistan Services Limited, with the finalisation of definitive agreement or agreements still pending. The company said further details would be communicated to the Pakistan Stock Exchange once the relevant agreements are finalised. The development follows a series of significant changes in PSL’s shareholding structure and subsequent legal proceedings surrounding the company’s ownership, board composition and management.
Pakistan Services Limited was established in 1958 as a public limited company under the Companies Act, 1913, which has since been replaced by the Companies Act, 2017. The company’s primary business is the ownership and management of the Pearl Continental Hotels chain. In addition to operating the hotel properties, Pakistan Services Limited grants franchises for the use of the Pearl Continental trademark and name. The company also operates a smaller budget hotel property in Lahore, giving it exposure to different segments of Pakistan’s hospitality industry.
The company’s ownership structure underwent major changes during 2025. On July 14, 2025, AKD Group Holdings (Private) Limited acquired a 27.95% stake in Pakistan Services Limited for more than Rs6.36 billion. Around the same period, Dawood Jan Mohammad acquired 28% of the company’s voting shares at a price of Rs700 per share. These transactions significantly changed the distribution of ownership in the listed hotel operator and were followed by further activity involving Thatta Cement.
On October 14, 2025, Thatta Cement Company Limited announced that it had acquired a 28% stake in Pakistan Services Limited for Rs6.45 billion. The transaction was completed at Rs710 per share and gave the cement company a significant position in the hotel operator. Thatta Cement is a listed cement manufacturer and also holds ownership of Thatta Power (Private) Limited. Its involvement in Pakistan Services Limited subsequently became an important part of the company’s evolving ownership structure.
Further developments emerged in February 2026 when Pakistan Services Limited deferred the election of its directors following directions from the Islamabad High Court. On February 24, the court suspended activities relating to the acquisition of shares and the election process. The court also directed that the existing position concerning PSL’s shareholding structure, Board of Directors, control and management be maintained.
The court proceedings added a legal dimension to the changes taking place within Pakistan Services Limited, particularly as multiple significant shareholders had acquired sizeable stakes in the company. The direction to maintain the status quo affected matters concerning the company’s ownership and governance while the legal issues remained under consideration.
The latest understanding reached by Thatta Cement represents another development in the restructuring process surrounding Pakistan Services Limited. However, the proposed restructuring cannot be considered completed at this stage because definitive agreements have yet to be finalised. Thatta Cement has indicated that the relevant details will be provided to the Pakistan Stock Exchange once the agreements are concluded.
The restructuring could have implications for the future ownership, governance and operational structure of Pakistan Services Limited, although the precise terms will only become clear after the definitive agreements are completed and formally disclosed. For now, the in-principle understanding provides the basis for the parties to move toward a formal restructuring arrangement while remaining subject to the required documentation and applicable processes.
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