Thatta Cement Negotiates PSL Restructuring To Settle Court Dispute.
✧ GENERATE BRIEFING +
Thatta Cement Company Limited (THCCL) has announced that negotiations are actively underway for a comprehensive restructuring of Pakistan Services Limited (PSL)—the parent company of the Pearl-Continental Hotels chain—to achieve an out-of-court settlement for a protracted dispute currently pending before the Islamabad High Court (IHC). The corporate dispute stems from a series of high-profile block share acquisitions in mid-to-late 2025—involving the AKD Group, Dawood Jan Mohammad, and subsequently Thatta Cement—which collectively accounted for roughly 56% of PSL's voting shares. Following legal challenges from former management groups over the legitimacy of the transactions and subsequent board elections, the Islamabad High Court intervened, issuing a status quo order that suspended share transfer actions and director elections under Companies Original No. 17 of 2025. While speculative reports have circulated regarding a potential division of select Pearl-Continental properties as part of the terms, both Thatta Cement and PSL have clarified that definitive agreements are still being finalized and will be formally disclosed to the Pakistan Stock Exchange (PSX) once complete.
Thatta Cement Company Limited (THCCL) said on Monday that negotiations are under way for a proposed restructuring of Pakistan Services Limited (PSL) aimed at reaching an amicable settlement of a dispute pending before the Islamabad High Court (IHC).
In a notice to the Pakistan Stock Exchange (PSX), Thatta Cement said the restructuring is being negotiated in connection with Companies Original No. 17 of 2025. The company added that the proposed arrangement will be finalised through definitive agreements before being formally communicated to the PSX and other relevant authorities.
The disclosure follows Thatta Cement’s announcement last week that it had reached an in-principle understanding regarding the proposed restructuring of PSL, subject to the completion of definitive agreements.
PSL, established in 1958, owns and manages the Pearl Continental Hotels chain and also franchises the Pearl Continental brand. The company operates hotel properties including a budget hotel in Lahore.
The dispute follows a series of major shareholding transactions in PSL. On July 14, 2025, AKD Group Holdings acquired a 27.95% stake for more than Rs6.36 billion, while Dawood Jan Mohammad acquired 28% of PSL’s voting shares at Rs700 per share.
Thatta Cement subsequently announced in October 2025 that it had acquired a 28% stake in PSL for Rs6.45 billion, at Rs710 per share. These transactions led to a broader dispute over control and subsequent legal proceedings.
The Islamabad High Court later suspended proceedings related to the share acquisitions and board elections, maintaining the status quo. The proposed restructuring is now being pursued as a possible route to resolve the dispute without further litigation.
Details of the proposed restructuring have not yet been finalised. Thatta Cement said the final terms will be disclosed once definitive agreements are executed and the relevant regulatory requirements are completed.
