Pakistan Services Limited (PSL), the company that operates the Pearl Continental Hotels chain, recently announced a significant change in ownership. On July 14, 2025, two firms acquired approximately 56% of its shares.
This coordinated purchase has led to speculation about a potential takeover, as experts believe the new owners now have sufficient control to influence the board of directors. The transactions were reported to the Pakistan Stock Exchange (PSX) under the Securities Act of 2015 and involved Dawood Jan Muhammad and AKD Holding. This has raised questions about the nature of the deal, whether it was a hostile takeover or mutually agreed upon.
Dawood Jan Muhammad purchased 9,107,800 shares, representing a 28% stake, at a price of Rs 700 per share, totalling over Rs 6.37 billion. AKD Holding acquired 9,089,651 shares, which constitutes a 27.9% stake, at the same price, amounting to more than Rs 6.3 billion. In total, the combined 18,197,550 shares are valued at over Rs 12 billion.
Topline Securities Chief Executive Mohammed Sohail commented: “If two parties acquire 55.95% of the shares of Pakistan Services Limited, they can take over the company.” He noted the deal could be hostile but might involve mutual understanding.
PSL owns nine hotels and one subsidiary throughout Pakistan. The company has postponed a board meeting scheduled for June 30, 2025, in light of these developments. Share prices increased from Rs 782 on July 11 to Rs 1,050 by July 20, marking a 10% rise and reflecting market reactions.
The acquisition could reshape PSL’s management, but details on the buyers’ intentions remain unclear. As Pakistan’s hospitality sector evolves, stakeholders watch for further announcements.
