Two Investors Acquire 56% Stake in Pearl Continental’s Parent Company, Sparking Takeover Rumors

In a significant development within Pakistan’s hospitality sector, two major investors have purchased a combined 56% stake in Pakistan Services Limited (PSL), the parent company of the prestigious Pearl Continental Hotels chain. According to disclosures filed with the Pakistan Stock Exchange (PSX), Dawood Jan Muhammad acquired 28% shares (9.1 million) for Rs6.37 billion, while AKD Holding secured 27.9% shares (9.08 million) for Rs6.3 billion, both at Rs700 per share.

Experts suggest that this acquisition could lead to a change in PSL’s management control. Mohammed Sohail, CEO of Topline Securities, stated that holding 55.95% shares allows the buyers to influence board decisions. While the move appears to be a potential hostile takeover, Sohail did not rule out the possibility of a mutual agreement between the parties involved.

The timing of these purchases coincides with PSL’s recent postponement of a board meeting on June 30. The company, which operates nine hotels and a subsidiary, saw its share price jump 10%—from Rs782 on July 11 to Rs1,050 by July 20—indicating strong market interest. Analysts are closely watching whether this signals a strategic expansion or a corporate restructuring.

As the situation unfolds, stakeholders await further clarity on the investors’ intentions. Will this lead to a revamp of Pakistan’s luxury hospitality sector, or is it merely a high-stakes financial play? The coming weeks may reveal the true nature of this billion-rupee deal.