PSL restructuring being negotiated to settle court case, says Thatta Cement

Thatta Cement Company Limited (THCCL) said on Monday that a proposed restructuring of Pakistan Services Limited (PSL) is being negotiated to resolve a matter pending before the Islamabad High Court amicably. The listed cement maker disclosed the development in a notice to the Pakistan Stock Exchange (PSX). “In order to amicably resolve the matter subjudice before the Islamabad High Court in Companies Original No. 17 of 2025, a proposed restructuring of the company is being negotiated, which will be finalized through the definitive agreement(s) and will, accordingly, be communicated to the Pakistan Stock Exchange Limited and other relevant authorities, ” the company said. The latest disclosure follows Thatta Cement’s announcement last week that it had reached an in-principle understanding regarding the proposed restructuring of Pakistan Services, subject to the finalisation of definitive agreements. Meanwhile, PSL was established in 1958 as a public limited company under the Companies Act, 1913 (now Companies Act, 2017). The company’s primary business involves owning and managing the chain of Pearl Continental Hotels. It also grants franchises for the use of its trademark and name “Pearl Continental” and operates a smaller budget hotel property in Lahore. However, in recent months, several significant changes in shareholding and subsequent legal developments have occurred. On July 14, 2025, AKD Group Holdings (Private) Limited acquired a 27. 95% stake in PSL for over Rs6. 36 billion. Around the same time, Dawood Jan Mohammad acquired 28% of PSL’s voting shares at Rs700 per share. Subsequently, on October 14, 2025, Thatta Cement Company Limited announced its acquisition of a 28% stake in PSL for Rs6. 45 billion (Rs710 per share). On February 24, 2026, Pakistan Services Limited deferred the elections of its directors following directives from the Islamabad High Court (IHC). The court suspended operations related to the acquisition of shares and elections, mandating a status quo concerning the company’s shareholding structure, the composition of its Board of Directors, and its control and management.

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