Thatta Cement to Negotiate PSL Restructuring to Resolve Court Case

Key Takeaways

Thatta Cement Company Limited (THCCL) is negotiating a restructuring of Pakistan Services Limited (PSL) to settle a court case.
The matter is pending before the Islamabad High Court in Companies Original No.17 of 2025.
PSL, established in 1958, owns and manages Pearl Continental Hotels and operates a budget hotel in Lahore.

Thatta Cement Company Limited (THCCL) has announced that it is negotiating a restructuring of Pakistan Services Limited (PSL) to resolve a court case currently pending before the Islamabad High Court. The company disclosed this development in a notice to the Pakistan Stock Exchange (PSX).

According to the notice, the aim is to amicably resolve the matter in Companies Original No.17 of 2025, which will be achieved through definitive agreements. These agreements will be communicated to the PSX and other relevant authorities.

This development comes after THCCL had previously reached an in-principle understanding regarding the proposed restructuring of PSL, subject to the finalisation of definitive agreements.

PSL, established in 1958, has a diverse portfolio, including owning and managing the chain of Pearl Continental Hotels. The company also grants franchises for the use of its trademark and name 'Pearl Continental' and operates a smaller budget hotel property in Lahore.

In recent months, significant changes in PSL’s shareholding have taken place. 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, THCCL announced its acquisition of a 28% stake in PSL for Rs6.45 billion (Rs710 per share).

On February 24, 2026, PSL 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.

The court’s directive highlights the ongoing legal complexities surrounding PSL, which are now being addressed through the proposed restructuring. THCCL’s involvement in the negotiations underscores its commitment to resolving the matter amicably.