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

Fauji Foundation has purchased a 19.70 percent voting stake in Pakistan Services Limited (PSX: PSEL), the business that owns and runs the Pearl-Continental (PC) hotel chain, in a accord worth concerning Rs.

Key points

• 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.
• 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 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.
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• Fauji Foundation's newly disclosed acquisition of 19.70 percent of PSEL's voting shares is the latest development in the protracted ownership battle.

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 create up its entire holding in the business.

Pakistan Services remarked 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 businesses.

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

For context, 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 created publicly available under the applicable regulations.

Fauji Foundation is a charitable trust established to backing former servicemen and their families. The disclosure identifies the foundation as the acquirer in the share transaction. A Much Higher Cost Than Earlier Deals.

In practice, the cost is concerning 44 percent higher than the Rs. 710 per share Thatta Cement paid when it purchased a 28 percent stake in the business in October 2025. AKD Group paid Rs. 700 per share for its 27.95 percent stake in July 2025. Backgorund: Pakistan Services' Long-Running Ownership Dispute.

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 ownership dispute at Pakistan Services Limited, the operator of Pearl-Continental Hotels, dates back to July 2025.

Notably, the transactions were challenged by the Hashwani Group. It had acquired Pakistan Services in 1985, triggering legal proceedings over control of regarding 56 percent of the company's voting shares.

Although Pakistan Services stated it had no formal knowledge of the documented plan, in September 2026, reports suggested a feasible out-of-court settlement under which five PC hotels could be divided between Thatta Cement and Fauji Foundation. Fauji Foundation's newly disclosed acquisition of 19.70 percent of PSEL's voting shares is the latest development in the protracted ownership battle. Stay Connected with ProPakistani.

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Taken together, the developments around fauji Foundation Enters Hospitality Sector With Rs. 6.55 Billion Stake in PC point to a situation that is still moving, and the coming days should bring more clarity.