Nishat Mills Limited has announced a proposed divestment of its investment in Nishat Sutas Dairy Limited (NSDL), citing challenging market and regulatory conditions affecting Pakistan’s dairy industry and the resulting pressure on its financial position.
According to a disclosure submitted to the Pakistan Stock Exchange on August 19, 2026, the Board of Directors of Nishat Mills approved the proposed sale of the company’s shareholding in NSDL, subject to approval by shareholders and completion of the required legal and regulatory formalities.
Nishat Sutas Dairy Limited was established as a joint venture between Nishat Mills and Sütas Süt Ürünleri A.Ş., a leading international dairy company from Türkiye. Nishat Mills currently holds 49.10% of NSDL’s total paid-up share capital.
Under the proposed transaction, Nishat Mills plans to divest its entire shareholding in NSDL to its joint venture partner, Sütas, at a proposed consideration of Rs. 5 per share. The transaction remains subject to shareholder approval as well as the execution of definitive transaction agreements and completion of applicable regulatory requirements.
The company said the decision followed deliberations by its Board of Directors, which considered prevailing market and regulatory conditions affecting the dairy industry. The Board determined that exiting the investment would be in the best interests of Nishat Mills and its shareholders.
Sütas has expressed its willingness to acquire the stake and continue operating NSDL, subject to the completion of the transaction agreements and required approvals. Nishat Mills noted that the proposed transaction would also support the continued participation of foreign investors in Pakistan’s economy and reflect the ongoing commitment of a foreign strategic investor to the country’s dairy sector.
Shareholders’ Approval Required
The proposed divestment is not yet final. Nishat Mills has scheduled an Extraordinary General Meeting (EOGM) for September 23, 2026, at 11:30 a.m. at Emporium Mall, The Nishat Hotel, Lahore, where shareholders will consider the matter.
The company has also announced that its share transfer books will remain closed from September 17 to September 23, 2026, both days inclusive, for participation and voting at the EOGM.
The proposed exit marks a strategic shift for Nishat Mills in relation to its dairy investment. If approved and completed, Sütas would take full ownership of NSDL, allowing the international dairy group to continue operating the business while Nishat Mills moves out of its investment.
For shareholders, the key development to watch will be the outcome of the September EOGM and the subsequent completion of the definitive transaction and regulatory process.
