Textile giant Nishat Mills (NML) on Friday said its board has decided to acquire Wernerfelt A/S, a Danish manufacturer of fabrics, either by the company itself and/or Nishat International FZE, Dubai, its wholly owned subsidiary.
The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.
“The Board of Directors of Nishat Mills Limited (Company) in their meeting held on 20 January 2023 (Friday), has decided to acquire 100% of the issued share capital (along with transfer of complete management control) of Wernerfelt A/S by the company and/or Nishat International FZE, Dubai, a wholly owned subsidiary of the company, for a consideration up to $4,500,000 from Lars Lauridsen Holding ApS, a company incorporated under the laws of Denmark, and to sign any or all documents / agreements including but not limited to a Memorandum of Understanding with the Seller as and when required in this respect,” read the notice.
Nishat Mills added that the aforesaid acquisition will be subject to signing of a definitive agreement(s) between the parties and applicable regulatory approvals.
“Established more than 80 years ago, Wernerfelt A/S has a wealth of experience and knowledge in developing and supplying high-quality fabrics for personal protection and workwear,” said Wernerfelt on its website.
Meanwhile, Nishat Mills Limited, incorporated in Pakistan under the Companies Act, 1913 (Now Companies Act, 2017), is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing, printing, stitching, apparel, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fibre and cloth, and to generate, accumulate, distribute, supply and sell electricity.