PC hotels ownership battle takes new turn as restructuring talks advance

ISLAMABAD: The long-running ownership and control dispute surrounding Pakistan Services Limited (PSL), owner and operator of the Pearl-Continental hotel chain, has entered a new phase as proposed restructuring talks move forward, while a viral claim involving Ehtasham Malik & Co has yet to be substantiated through official corporate disclosures.

The dispute centres on major changes in PSL’s shareholding that began in 2025. On July 14, 2025, AKD Group Holdings acquired a 27.95% voting stake in PSL, while Dawood Jan Mohammad acquired another 28% stake. Thatta Cement later acquired 9,107,800 voting shares, representing 28% of PSL, in October 2025.

The developments triggered a legal dispute over control of the company, with proceedings subsequently reaching the Islamabad High Court. The court proceedings have included issues concerning PSL’s shareholding, board composition and management, while the matter remains sub judice.

A significant development came on September 10 when Thatta Cement disclosed to the Pakistan Stock Exchange that it had reached an in-principle understanding regarding a proposed restructuring of PSL. The company said the arrangement remained subject to the finalisation of definitive agreements.

PSL subsequently confirmed that restructuring negotiations were underway to seek an amicable resolution of the matter pending before the Islamabad High Court in Companies Original No. 17 of 2025. The company said final agreements, once concluded, would be communicated to the PSX and other relevant authorities.

Meanwhile, reports concerning a possible division of Pearl-Continental properties between different parties have circulated in the market. PSL, however, previously stated that it had no knowledge of the reported hotel split and had received no information from any shareholder regarding such an arrangement.

Against this backdrop, a graphic circulating in Islamabad business circles claims that Ehtasham Malik & Co has emerged as a potential contender for a board stake in the ongoing corporate contest. However, the claim could not be independently verified through the PSX disclosures reviewed for this report.

No official disclosure reviewed in connection with the current restructuring talks establishes Ehtasham Malik & Co as a shareholder of PSL or confirms that the company has secured a board position. The viral claim therefore remains unverified unless and until supported by a formal corporate or regulatory filing.

For now, the confirmed development is that PSL’s restructuring is being negotiated, while the definitive terms and final ownership or management arrangements have yet to be formally disclosed. The outcome of the negotiations and the pending court proceedings will determine the next stage of the battle over Pakistan’s prominent hotel chain.