PC Faces Major Shake-Up After 56% Stake Acquired

A potential takeover of the renowned PC Hotels chain is on the horizon after two firms acquired a controlling 56% stake in its parent company, Pakistan Services Limited (PSL). The coordinated purchases, worth over Rs12 billion, have fueled market speculation and raised questions about the future direction of one of Pakistan’s most iconic hospitality brands.

Two Major Acquisitions on the Same Day

On July 14, 2025, Dawood Jan Muhammad acquired 28% of PSL’s shares by purchasing 9,107,800 shares at Rs700 each, amounting to more than Rs6.37 billion. On the same day, AKD Holding secured a 27.9% stake, buying 9,089,651 shares also at Rs700 per share—worth around Rs6.36 billion.

Combined, these transactions involve 18,197,550 shares and represent a 55.95% stake in the company. This majority shareholding is enough to take control of PSL’s board and strategic decisions, industry insiders say.

Market Reactions and Share Price Surge

The market responded sharply to the news. PSL’s share price, which stood at Rs782 on July 11, surged by 10% over the following days, closing at Rs1,050 on July 20. Investors interpreted the share acquisition as a strong signal of confidence in the company’s value and future.

Analysts believe the sharp price movement reflects expectations of structural change in PSL’s management and potential growth in operations or restructuring.

Takeover or Strategic Collaboration?

Mohammed Sohail, Chief Executive of Topline Securities, confirmed that the buyers now hold enough shares to take over PSL. However, he said it remains unclear whether this acquisition is part of a hostile takeover or a mutually agreed deal.

“This could very well be a coordinated move,” Sohail noted. “But if the two buyers act independently, it may lead to a management battle or a potential boardroom reshuffle.”

Read: PSX Drops 380 Points Amid Profit-Taking in the Market

The absence of official statements from the acquiring firms has added to the uncertainty, leaving stakeholders waiting for clarity on whether the two entities will act in coordination or pursue separate agendas.

Board Meeting Postponement Raises Eyebrows

PSL had earlier informed the Pakistan Stock Exchange about postponing its board meeting scheduled for June 30. This decision now appears to align with behind-the-scenes developments that were likely in motion during that period.

Industry observers are closely watching whether a new board will be announced or if changes in corporate strategy are on the cards.

Strategic Importance of PSL and PC Hotels

Pakistan Services Limited is the owner and operator of the prestigious Pearl Continental Hotels brand, which runs nine upscale hotels across the country. It also owns a subsidiary involved in hospitality operations. As one of the few publicly listed hotel chains in Pakistan, PSL plays a major role in the country’s tourism and business travel industries.

The company’s assets, brand reputation, and high-value properties make it a strategic acquisition for investors looking to tap into the hospitality and tourism sectors.

What Comes Next?

The big question now is how the two stakeholders plan to move forward. Will they collaborate, compete, or carve out their own paths within the company? Investors, employees, and industry watchers are awaiting official updates to understand how the ownership change will impact PSL’s governance and operational direction.

In the meantime, the market is likely to remain active as speculation continues. Any further buying activity or announcement from the new stakeholders could significantly affect share prices and future strategic decisions at Pakistan Services Limited.

As things stand, PC Hotels is entering a new chapter—one that could reshape the hospitality landscape in Pakistan.