KARACHI: Thatta Cement Company Limited has acquired a 28 per cent stake in Pakistan Services Limited (PSEL), the operator of the Pearl-Continental (PC) hotels chain, the company announced on Tuesday.
In a notice to the Pakistan Stock Exchange (PSX), the cement producer said it purchased 9.1 million voting shares of Pakistan Services at Rs710 apiece on October 13, 2025 (Monday). Following the transaction, Thatta Cement’s total shareholding stands at 28 per cent of the company’s issued voting shares.
According to Saad Hanif, head of research at Ismail Iqbal Securities, Thatta Cement’s “acquisition for around Rs6.5 billion reflects a deliberate pivot towards building a more balanced and resilient earnings profile. With the cement sector inherently cyclical and exposed to cost volatility, this move gives Thatta exposure to a cash-generative, service-driven industry with strong brand equity.” The transaction, he said, cannot be seen as any takeover.
The acquisition was disclosed in line with Section 110 of the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
Hanif added, “Notably, the transaction follows the company’s earlier decision to raise PKR 5.5 billion through Sukuk to finance expansion or acquisition opportunities, indicating a well-signalled capital allocation strategy rather than a one-off investment.”
In a separate notice to the PSX, PSEL said its substantial shareholder Dawood Jan Muhammad sold his entire holding of 9.1 million shares in the company. “The shares were sold on October 13 at a price of Rs710 apiece,” according to the filing. Following the transaction, Dawood Jan’s shareholding in the company stands at zero per cent.
PSEL had entered into a strategic financing arrangement with Dawood Jan Muhammad (28 per cent), along with AKD Holding (27.9 per cent), in July, which gave the two companies a 56 per cent stake in the company. The Hashoo Group had then clarified that the transaction was to consolidate and streamline the group’s shareholding and that “control remains entirely with the Hashoo Group and the Hashwani family.”
In the latest case of restructuring, no financial details or strategic rationale were disclosed beyond the regulatory filing by Thatta Cement.
Hanif added, “While the lack of board control limits strategic influence in the near term, PSEL’s established hospitality footprint offers meaningful upside if tourism and domestic demand continue to recover. That said, hospitality brings its own operational and macro risks, making governance, timing and execution crucial. If managed with discipline, this could mark the start of a more diversified and sustainable growth trajectory for Thatta.”
Per Nasheed Malik, an analyst at Arif Habib Ltd, “This acquisition will diversify business of Thatta Cement which now sells cement, tractors and hospitality services. The deal will also add to the profitability of the company; PSEL profits stood at Rs992 million in 9MFY25.”
