Fauji Foundation PC Hotels Stake for Rs6.55bn

In a Fauji Foundation PC Hotels deal worth about Rs6.55 billion, the foundation has bought a 19.70 per cent voting stake in Pakistan Services Limited, the company that owns and runs the Pearl-Continental hotel chain. The purchase, disclosed to the Pakistan Stock Exchange on November 3, is the latest move in a long-running battle for control of one of Pakistan’s best-known hospitality groups.

According to the disclosure, Fauji Foundation acquired 6,406,797 shares on November 2 at Rs1,022.42 per share. Those 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.

Fauji Foundation PC Hotels deal at a premium

The price stands out. It is about 44 per cent higher than the Rs710 per share Thatta Cement paid when it bought a 28 per cent stake in the company in October 2025. AKD Group paid Rs700 per share for its 27.95 per cent stake in July 2025. Fauji Foundation therefore paid well above the levels set by the two earlier buyers.

In its disclosure, Fauji Foundation said the acquisition was made in line 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 is the owner and operator of Pearl-Continental Hotels and other hospitality brands, including Pearl-Continental Residences and Hotel One. 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.

A dispute that goes back to July 2025

The ownership dispute at Pakistan Services dates back to July 2025, when AKD Group Holdings and its subsidiary acquired a 27.95 per cent stake. Thatta Cement followed in October 2025 with a purchase of roughly 28 per cent. The transactions were challenged by the Hashwani Group, which had acquired Pakistan Services in 1985, triggering legal proceedings over control of about 56 per cent of the company’s voting shares.

In September 2026, reports suggested an out-of-court settlement dividing five PC hotels between Thatta Cement and Fauji Foundation. Pakistan Services said at the time that it had no formal knowledge of the reported plan. Fauji Foundation’s newly disclosed acquisition of 19.70 per cent of the voting shares is the latest development in that protracted fight.

Together, AKD at about 27.95 per cent, Thatta Cement at about 28 per cent and Fauji Foundation at 19.70 per cent account for roughly three quarters of the voting shares, which raises a plain question for minority shareholders: who will set the direction of the hotel group.

What the deal means for Pakistan’s hotel trade

For Pakistan’s hospitality sector, the deal matters beyond one share register. Pearl-Continental hotels anchor business travel in Karachi, Lahore and Islamabad, and their ownership shapes investment, hotel jobs and the country’s image for visitors.

The price also signals confidence in that trade. A buyer does not pay a 44 per cent premium over last year’s deals unless it sees lasting value in the hotels.

The wider business backdrop adds context. Private-sector net borrowing reached Rs87 billion between July 1 and October 23, a sign that firms are borrowing again after a period of debt retirement. Large deals such as this one sit inside that same cycle of renewed business activity.

Trade and investment flows also frame the deal. Pakistan and Tajikistan set a $200 million trade target, while Sindh’s World Bank portfolio stands at $3.85 billion. Both stories show capital moving into Pakistan, even as investors weigh risk carefully. The Fauji purchase fits that pattern: a domestic institution putting serious money into a household-name asset.

Travel costs are part of the same picture. Petrol and diesel prices were cut for November 3, which eases road travel costs for hotel guests and staff alike. Cheaper travel does not decide a hotel deal, but it supports the demand on which hotels depend.

What happens next

Three questions will shape the next stage. First, will the Hashwani Group’s legal challenge change the balance of control, or will the three large blocks settle their positions. Second, will Fauji Foundation seek board representation in line with its 19.70 per cent stake. Third, will the reported plan to divide five hotels resurface in a formal disclosure.

Frequently asked questions

How much did Fauji Foundation pay for the PC Hotels stake?

Fauji Foundation paid about Rs6.55 billion for 6,406,797 shares in Pakistan Services Limited at Rs1,022.42 per share, giving it a 19.70 per cent voting stake.

Who owns Pakistan Services Limited?

Pakistan Services Limited owns and runs the Pearl-Continental hotel chain, Pearl-Continental Residences and Hotel One. Its large shareholders now include AKD Group, Thatta Cement and Fauji Foundation.

Why is the price notable?

The Rs1,022.42 price is about 44 per cent higher than the Rs710 per share Thatta Cement paid in October 2025, and well above the Rs700 AKD Group paid in July 2025.

What is the background to the ownership dispute?

The dispute began in July 2025 when AKD Group bought 27.95 per cent, followed by Thatta Cement’s roughly 28 per cent purchase. The Hashwani Group, which acquired Pakistan Services in 1985, challenged the transactions in legal proceedings over control of about 56 per cent of voting shares.

What happens next for the hotel group?

The next steps depend on the legal challenge, whether Fauji Foundation seeks board representation, and whether the reported plan to divide five hotels between Thatta Cement and Fauji Foundation appears in a formal disclosure.