Fauji Foundation has acquired a 19.70 percent voting stake in Pakistan Services Limited (PSX: PSEL), the owner and operator of the Pearl-Continental (PC) hotel chain, in a deal worth approximately Rs6.55 billion — a purchase that lands squarely in the middle of the company’s long-running ownership battle.
According to a disclosure filed with the Pakistan Stock Exchange (PSX) on November 3, the foundation picked up 6,406,797 shares on November 2 at Rs1,022.42 per share. The shares constitute its entire holding in the company.
Pakistan Services said it received the information in a letter from Fauji Foundation dated November 2, filed under Section 110 of the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. The foundation submitted the requisite disclosure to the PSX, Pakistan Services Limited and the Securities and Exchange Commission of Pakistan (SECP). Pakistan Services subsequently asked the exchange to make the information public under the applicable regulations.
A Steep Price Tag
The acquisition values Pakistan Services at a notable premium to recent transactions. At Rs1,022.42 a share, Fauji Foundation paid roughly 44 percent more than the Rs710 per share Thatta Cement shelled out for a 28 percent stake in October 2025. AKD Group paid Rs700 per share for its 27.95 percent holding in July 2025.
Pakistan Services owns and operates Pearl-Continental Hotels along with other hospitality brands, including Pearl-Continental Residences and Hotel One. Fauji Foundation is a charitable trust established to support former servicemen and their families.
Background: A Dispute That Won’t Check Out
The ownership wrangle at Pakistan Services dates back to July 2025, when AKD Group Holdings and its subsidiary snapped up a 27.95 percent stake, followed by Thatta Cement’s purchase of an approximately 28 percent holding in October 2025.
The transactions were challenged by the Hashwani Group, which had acquired Pakistan Services back in 1985, setting off legal proceedings over control of roughly 56 percent of the company’s voting shares.
In September 2026, reports pointed to a possible out-of-court settlement that would split five PC hotels between Thatta Cement and Fauji Foundation — although Pakistan Services said at the time it had no formal knowledge of any such plan. Fauji Foundation’s newly disclosed 19.70 percent stake is the latest chapter in the protracted control contest, and at the richest price paid to date.
