Pakistan Services Limited (PSL), the company behind Pakistan’s Pearl Continental (PC) hotel chain, could see five of its hotel properties divided between Thatta Cement and Fauji Foundation under a proposed out-of-court settlement.

The potential arrangement comes after more than a year of legal disputes involving ownership and voting rights in Pakistan Services. The dispute centers on a voting stake of approximately 56 percent in the company.

According to a report by Nukta, the parties involved have signed a memorandum of understanding (MoU) outlining a possible settlement. However, the proposed agreement has not yet been formally announced by the parties.

The transfer of the hotel properties has also not been completed. This means the proposed division remains subject to the completion of the required steps and should not yet be treated as a finalized transaction.

The dispute has attracted attention because of the importance of Pakistan Services and its Pearl Continental hotel portfolio. PC Hotels is one of the country’s prominent hospitality brands, with properties serving business and leisure travelers in several major locations.

Under the proposed settlement, Thatta Cement and Fauji Foundation could receive different hotel properties as part of an effort to resolve the prolonged ownership battle. The exact allocation and terms would depend on the final implementation of the agreement.

The MoU is significant because an out-of-court settlement could potentially bring an end to a lengthy legal dispute without requiring the parties to continue fighting through the courts.

For Pakistan Services, resolving the ownership conflict could provide greater clarity around the company’s future direction and management. It could also reduce uncertainty surrounding the ownership and control of its valuable hotel assets.

The development is also noteworthy for Thatta Cement and Fauji Foundation, given the potential acquisition of major hospitality properties. Any eventual transfer could have implications for the companies’ respective business portfolios and investment strategies.

However, the proposed arrangement remains subject to formalization. Until the transfers are completed and officially announced, the ownership structure of the affected PC Hotels properties remains unchanged.

The dispute over the approximately 56 percent voting stake has been ongoing for more than a year, making the reported MoU an important development in the case.

If implemented, the proposed settlement could mark a major change in the ownership landscape of Pakistan Services and its hotel business. Further details are expected once the parties formally announce the agreement and disclose the terms of the proposed transfers.