KARACHI – Fauji Foundation acquired nearly 20pc stake in PC Hotels operator for Rs6.55 billion, adding a new chapter to one of Pakistan’s most closely watched hospitality ownership tussle.
Pakistani conglomerate acquired 19.70% stake in Pakistan Services Limited (PSEL), the company behind the prestigious Pearl-Continental (PC) hotel chain, in a multibillion-rupee deal. The Rs6.55 billion acquisition, disclosed to the Pakistan Stock Exchange (PSX) marks latest high-profile development in a corporate dispute involving some of Pakistan’s most influential business groups.
The transaction attracted attention because Fauji Foundation paid higher price per share than investors involved in previous major purchases of PSEL stock.
According to PSX data, Fauji Foundation purchased 6,406,797 shares of Pakistan Services Limited on November 2, 2026, at Rs1,022.42 per share. The transaction, valued at approximately Rs6.55 billion, or $23.7 million, gives the foundation 19.70% of the company’s voting rights.
The acquired shares represent Fauji Foundation’s entire disclosed investment in Pakistan Services Limited. The hotel operator confirmed receiving a letter dated November 2 from the foundation regarding the acquisition. The notification was submitted under Section 110 of the Securities Act, 2015, alongside Regulation 4(2) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
Fauji Foundation also notified the Securities and Exchange Commission of Pakistan (SECP) of the transaction. With approximately 32.52 million outstanding shares, the newly acquired holding represents nearly one-fifth of PSEL’s voting capital.
The foundation purchased PSEL shares at Rs1,022.42 each, considerably above the prices recorded in two major ownership transactions during 2025. In October last year, Thatta Cement acquired a roughly 28% stake in Pakistan Services Limited at Rs710 per share.
In mid-2025, AKD Group and related investors purchased a 27.95% holding at Rs700 per share. This means Fauji Foundation paid approximately 44% more than Thatta Cement and 46% more than the price paid by AKD-linked investors.
| Investor | Stake | Share price | Transaction |
|---|---|---|---|
| AKD Group and related parties | 27.95% | Rs700 | Over Rs6.36 billion |
| Thatta Cement | Around 28% | Rs710 | Around Rs6.47 billion |
| Fauji Foundation | 19.70% | Rs1,022.42 | Around Rs6.55 billion |
The latest investment comes more than a year after a series of major share transactions triggered a dispute over the ownership and control of Pakistan Services Limited.
The controversy began escalating in July 2025 when AKD Group Holdings and its subsidiary purchased approximately 9.09 million PSEL shares, securing a 27.95% stake for more than Rs6.36 billion. Around the same time, businessman Dawood Jan Mohammad acquired approximately 28% of the company.
The ownership landscape changed again in October 2025 when Thatta Cement bought 9,107,800 shares, equivalent to about 28% of PSEL, at Rs710 apiece. The transaction was valued at approximately Rs6.45 billion to Rs6.47 billion. Together, the two substantial shareholdings accounted for nearly 56% of the company’s voting shares, raising questions about the future of the management structure.
Another dramatic turn emerged in September 2026 when reports suggested that the rival parties were exploring an out-of-court settlement that could involve restructuring the company’s hotel assets. Under a reported proposal, five well-known Pearl-Continental properties could be divided between Thatta Cement and Fauji Foundation.
Pearl-Continental Peshawar had previously been sold separately to Serena. However, the reported division of hotel properties was not confirmed as a finalized agreement.
Pakistan Services Limited publicly stated that it had no formal knowledge of the proposed arrangement and had not received any official communication from shareholders regarding such a division.
Founded in 1958, Pakistan Services Limited has developed into a prominent name in Pakistan’s hotel industry. PSX-listed company is best known for owning and operating the Pearl-Continental hotel chain, which has long maintained a presence in major cities and tourist destinations. Its business interests also include Pearl-Continental Residences, Hotel One and hospitality-related franchise and trademark arrangements.
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