Nishat Mills to exit dairy venture with Turkish partner Sutas

Nishat Mills (NML) has approved the sale of its full 49.1 per cent holding in Nishat Sutas Dairy Limited (NSDL) to Sütaş Süt Ürünleri A.Ş., the Turkish firm behind their joint venture. Business Recorder reported that the move was notified to the PSX through a Wednesday filing. The proposed price is Rs5 per share, though the deal still needs shareholder endorsement.

The board linked the decision to market and regulatory conditions in the dairy industry, which it said had weighed on the company's finances. It judged that an exit is preferable for the firm and its owners. NSDL is an associated company of Nishat Mills, formed as a joint venture with the Turkish group.

According to the filing, Sütaş has expressed interest in acquiring NSDL and keeping it running. The company framed the transfer as supportive of continued foreign investment in Pakistan's economy. Completion depends on signing definitive agreements and obtaining the required approvals.