# Fauji Foundation buys 19.7% of Pearl Continental owner Pakistan Services for Rs 6.55 billion

Source: Searchable (https://searchable.pk/news/business/fauji-foundation-buys-197percent-of-pearl-continental-owner-pakistan-services)
Type: News article
Author: Searchable Editorial
Published: 3 Nov 2026
Updated: 3 Nov 2026
Retrieved: 4 Nov 2026

> The conglomerate paid Rs 1,022 a share for 6.4 million PSL shares, far above what AKD and Thatta Cement paid for their stakes. What the deal means.

**Fauji Foundation has bought 19.70% of Pakistan Services Limited (PSL), the listed company that owns and runs the Pearl Continental hotel chain, for about Rs 6.55 billion.** PSL told the Pakistan Stock Exchange on Tuesday, 3 November 2026, that it had received a letter from Fauji Foundation dated 2 November, [Business Recorder reported](https://www.brecorder.com/news/40447179/fauji-foundation-acquires-nearly-20-stake-in-pakistan-services-for-rs655-billion).

## The deal in numbers

- **Shares bought:** 6,406,797 voting shares
- **Price:** Rs 1,022.42 a share
- **Total:** about **Rs 6.55 billion** (roughly $23.7 million at the [dollar rate](/data/usd-pkr) of about Rs 277)
- **Stake:** 19.70% of PSL's voting shares, which is now Fauji Foundation's entire holding
- **Date of acquisition:** 2 November 2026

The disclosure was made under Section 110 of the Securities Act, 2015, and the takeover regulations of 2017, which require anyone crossing set shareholding levels in a listed company to tell the market.

## What Pakistan Services owns

PSL was set up in **1958**. It owns and manages the **Pearl Continental** hotels, licenses the PC name and trademark to franchised hotels, and runs a smaller budget hotel in Lahore. The PC brand covers some of the best known hotels in Karachi, Lahore, Rawalpindi, Peshawar, Bhurban and Muzaffarabad.

## A company changing hands in pieces

The stake is the latest in a series of large purchases in PSL, according to Business Recorder:

- In **July last year**, AKD Group Holdings bought **27.95%** for more than Rs 6.36 billion, and on the same day Dawood Jan Mohammad bought **28%** at **Rs 700 a share**.
- **Thatta Cement** later announced a **28%** stake for Rs 6.45 billion, at **Rs 710 a share**.
- In **September 2026**, Thatta Cement reached an in-principle understanding on a restructuring of PSL meant to settle a matter pending before the **Islamabad High Court**.

Fauji Foundation paid about **44% more per share** than the Rs 710 Thatta Cement paid, a sign of how much the hotel group's value has been re-rated as buyers compete for it.

## What it means for investors

Fauji Foundation, one of Pakistan's largest conglomerates, already controls fertiliser, cement, power, food and banking businesses. A near-20% block makes it one of PSL's biggest shareholders, though not a controller. Neither side has said whether more buying is planned; a holding above 30% would trigger a mandatory public offer to other shareholders under the takeover rules.

If you hold PSL or other PSX shares, the [capital gains tax calculator](/tools/tax/capital-gains-tax-calculator) works out what you owe when you sell, and the [KSE-100 page](/data/kse-100) tracks the market every day.

## Frequently asked questions

**Who owns Pearl Continental hotels?**

Pearl Continental hotels are owned and run by Pakistan Services Limited (PSL), a PSX-listed company. On 2 November 2026 Fauji Foundation bought 19.70% of PSL, alongside earlier large stakes held by AKD Group, Dawood Jan Mohammad and Thatta Cement.

## Sources

- Fauji Foundation acquires nearly 20% stake in Pakistan Services for Rs6.55 billion (3 Nov 2026) (Business Recorder): https://www.brecorder.com/news/40447179/fauji-foundation-acquires-nearly-20-stake-in-pakistan-services-for-rs655-billion
- Fauji Foundation acquires 19.70% stake in Pakistan Services Limited for Rs6.55 billion (Profit): https://profit.pakistantoday.com.pk/2026/11/03/fauji-foundation-acquires-1970percent-stake-in-pakistan-services-limited-for-rs655-billion

How to cite: "Fauji Foundation buys 19.7% of Pearl Continental owner Pakistan Services for Rs 6.55 billion", Searchable, 3 Nov 2026, https://searchable.pk/news/business/fauji-foundation-buys-197percent-of-pearl-continental-owner-pakistan-services