PSL says unaware of reported Pearl-Continental hotels split

Clarification follows a digital media report of proposed settlement involving five hotels; PSL says no shareholder has informed it and shareholding cases remain before IHC Pakistan Services Limited (PSL), the listed company that owns and operates the Pearl-Continental hotel chain, said on Monday it had no knowledge of reports about a purported split of its hotel properties and had received no information from any shareholder regarding such an arrangement. The PSL issued this clarification through a notice to the Pakistan Stock Exchange (PSX) on Monday. The clarification follows a report by digital media outlet Nukta that five Pearl-Continental properties could be divided between Thatta Cement and Fauji Foundation under a proposed out-of-court settlement of a prolonged dispute over control of roughly 56% of PSL's voting shares. However, PSL said it had no knowledge of the contents of the report and had not received any information from any shareholder on the matter. "We would like to clarify that the Company does not have any knowledge about the contents stated in the story nor has it received any information from any shareholder about this matter," PSL said, adding that it was therefore not in a position to comment further. Citing sources familiar with the matter, Nukta reported that the parties had signed a memorandum of understanding for a proposed out-of-court settlement following more than a year of legal disputes over the roughly 56% voting stake in PSL. Under the arrangement, Pearl-Continental Karachi and Pearl-Continental Rawalpindi would be transferred to Thatta Cement, while Pearl-Continental Lahore, Pearl-Continental Bhurban and Pearl-Continental Muzaffarabad would go to Fauji Foundation. The underlying ownership dispute dates back to mid-2025. While PSL did not comment on the details of the reported settlement, it confirmed that litigation concerning the company's shareholding remains unresolved. The company said cases relating to its shareholding are currently sub judice and awaiting adjudication before the Islamabad High Court. Pakistan Services Limited said it remained committed to keeping shareholders, regulators and the public appropriately informed and would disclose any development that requires disclosure under applicable laws and regulations to the PSX. Pakistan Services Limited, incorporated in Pakistan in 1958 as a public limited company, is primarily engaged in the hotel business. It owns and operates the Pearl-Continental hotel chain, along with a smaller budget hotel property in Lahore, and also franchises the Pearl-Continental name and trademark.