KARACHI: Pakistan Services Limited (PSX: PSEL), the owner and operator of Pearl Continental Hotels, has refuted claims of a potential division of its hotel business.
In a clarification submitted to the Pakistan Stock Exchange on September 7, the company said it had received no information regarding the reported development. Moreover, it said no shareholder had informed management about such an arrangement.
Consequently, Pakistan Services said it could not comment further on the reports currently circulating on social media and in the media.
Company Points to Pending Shareholding Cases
However, Pakistan Services acknowledged that cases concerning the company’s shareholding remain sub judice and await adjudication before the Islamabad High Court.
The company reiterated its commitment to transparency and said it would continue keeping shareholders, regulators and the public appropriately informed about material developments.
Furthermore, it said any matter requiring disclosure under applicable laws and regulations would be communicated to the Pakistan Stock Exchange in accordance with regulatory requirements.
Reports Suggest Possible Out-of-Court Settlement
The clarification follows reports claiming that a proposed out-of-court settlement could result in several Pearl Continental hotels being divided between Thatta Cement and Fauji Foundation.
According to those reports, the proposed arrangement follows more than a year of legal and ownership disputes involving an approximately 56 percent voting stake in Pakistan Services.
Meanwhile, the ownership dispute has also reached the Islamabad High Court.
The court previously suspended the operation of notices concerning the acquisition of shares and proposed board elections. It also restrained certain parties from interfering with the management and affairs of Pakistan Services.
Nevertheless, Pakistan Services has not confirmed any settlement or division of its hotel assets and maintains that it has received no information about the reported proposal.
