In a significant corporate development, two firms have acquired nearly 56% of Pakistan Services Limited (PSL), the company that owns and operates the Pearl Continental (PC) Hotel chain. The acquisitions, totaling over Rs12 billion, have raised speculation about a potential management takeover. These transactions were officially reported to the Pakistan Stock Exchange (PSX) under the Securities Act 2015.
Investor Dawood Jan Muhammad purchased around 28% of PSL by acquiring 9,107,800 shares at Rs700 each, amounting to over Rs6.37 billion. On the same day, July 14, AKD Holding also secured a 27.9% stake by buying 9,089,651 shares, also at Rs700 per share. This acquisition was worth more than Rs6.3 billion, bringing the combined stake to 56%.
The two purchases together account for 18,197,550 shares of PSL, granting the buyers enough influence to possibly control the company’s board. Experts believe this could lead to a shift in the company’s leadership. According to Topline Securities CEO Mohammed Sohail, owning 55.95% of a company typically allows the investors to take over its board.
Although the deal may seem hostile, Sohail suggested it might also be a mutually agreed transaction between the two parties. He noted that if the collaboration was planned, it could lead to a strategic reshaping of PSL’s business direction. Investors are watching closely to see how this development unfolds.
Meanwhile, PSL’s share price surged following the news. On July 11, the share price stood at Rs782 but soared to Rs1,050 by July 20 — a 10% increase. The company, which owns nine hotels and one subsidiary, had postponed a board meeting on June 30, possibly linked to this major shift.
This development could significantly impact the hospitality industry in Pakistan, especially if the new stakeholders introduce fresh strategies for expansion or restructuring. Market analysts are awaiting official statements from the acquiring parties regarding their future plans for PSL.