Nishat Mills Limited (PSX: NML) has approved the proposed sale of its entire 49.10 percent stake in Nishat Sutas Dairy Limited to its Turkish joint venture partner, Sutas Sut Urunleri A.S., as pressure on the dairy industry weighs on the company’s financial position.
The decision was approved by the Nishat Mills board at an emergent meeting held on August 19. The proposed transaction values the stake at Rs. 5 per share and remains subject to shareholder approval and completion of the required legal and regulatory formalities.
Nishat Mills said prevailing market and regulatory conditions affecting the dairy industry, along with the resulting strain on its financial position, led the board to conclude that exiting its investment in Nishat Sutas Dairy was in the best interest of the company and its shareholders.
Nishat Sutas Dairy was established as a joint venture between Nishat Mills and Sutas, a leading international dairy company based in Türkiye. Nishat Mills currently holds 49.10 percent of the dairy company’s total paid up share capital.
Sutas has expressed its willingness to acquire Nishat Mills’ entire holding and continue operating Nishat Sutas Dairy, subject to the execution of definitive transaction agreements and receipt of the required approvals.
Nishat Mills said the proposed transaction would also encourage continued participation by foreign strategic investors in Pakistan’s dairy sector and broader economy. The company described Sutas as a leading international dairy company and its existing joint venture partner.
The proposed exit still requires approval from Nishat Mills shareholders. The company has scheduled an Extraordinary General Meeting for September 23, 2026, at the Emporium Mall in Lahore, where shareholders will consider the transaction.
Nishat Mills has also announced that its share transfer books will remain closed from September 17 through September 23 for purposes related to the Extraordinary General Meeting.
The post Nishat Mills to Exit Dairy Business With Turkish Partner appeared first on ProPakistani.
