Nishat Mills to exit dairy venture with Turkish partner Sutas

Nishat Mills Limited (NML) has approved the divestment of its entire 49.1% stake in Nishat Sutas Dairy Limited (NSDL) to its Turkish joint venture partner, Sütaş Süt Ürünleri A.Ş.

NML disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“The Board of Directors of the company has, after due deliberation and taking into account the prevailing market and regulatory conditions affecting the dairy industry and the consequent strain on its financial position, determined that it is in the best interest of the company and its shareholders to exit from its investment in Nishat Sutas Dairy Limited (NSDL),” read the notice.

NSDL is an associated company of Nishat Mills Limited, established as a joint venture with Sütaş Süt Ürünleri A.Ş., Türkiye.

“Accordingly, the board has approved the proposed divestment of the company’s entire shareholding in NSDL to its joint venture partner, Sutas, at a proposed consideration of Rs5 per share, subject to the approval of the shareholders of the company and compliance with all requisite legal and regulatory formalities, including execution of the definitive transaction agreement(s),” it added.

Nishat Mills shared that Sutas, a leading international dairy company, has expressed its willingness to acquire and continue to operate NSDL.

The development is subject to the execution of the definitive transaction agreements and completion of the applicable approvals.

“The transaction would also encourage the continued participation of foreign investors in Pakistan’s economy and demonstrates the continued commitment of a foreign strategic investor to Pakistan’s dairy sector and economy,” it added.