Shareholders of Nishat Mills Limited have approved the sale of the company’s entire stake in its dairy joint venture, formally clearing the shareholder approval required for the proposed exit.
The decision was taken at an extraordinary general meeting held on Wednesday, 23 September 2026, at Emporium Mall in Lahore. The resolution follows the board’s earlier decision in August to dispose of the company’s investment in Nishat Sutas Dairy Limited.
What The Resolution Covers
Nishat Mills will sell 409,673,410 ordinary shares in Nishat Sutas Dairy Limited, representing approximately 49.10% of the associated company’s issued and paid-up capital.
The buyer is Sütaş Süt Ürünleri A.Ş., the Turkish dairy group that is already the other major partner in the joint venture.
The agreed price is Rs5 per share, putting the total consideration at Rs2,048,367,050, or approximately Rs2.05 billion.
The transaction will transfer Nishat Mills’ entire holding in the dairy business to its Turkish partner.
Why The Company Is Stepping Back
Nishat Sutas Dairy was established as a Pakistan-Türkiye partnership focused on processing and selling milk and dairy products.
The investment, however, has faced challenging market and regulatory conditions in Pakistan’s dairy sector. Nishat Mills’ board had previously indicated that these conditions had affected the investment and contributed to pressure on its financial performance.
An exit allows Nishat Mills to recover value from its investment while reducing its exposure to potential future losses associated with the dairy business.
Sütaş has expressed its willingness to acquire the shares, allowing the dairy operation to continue under the remaining partner’s ownership.
Conditions Still Standing
The shareholder approval does not immediately complete the transaction.
The proposed sale remains subject to all required regulatory approvals and other applicable conditions.
Nishat Mills’ chief executive and company secretary have been authorized to act jointly or separately to execute the share sale agreement and related documents.
They may also complete the required statutory filings with the registrar of companies and other relevant authorities.
Until the necessary approvals, documentation and share transfer procedures are completed, Nishat Mills will continue to hold the shares.
What It Means For The Group
The disposal marks a move away from a non-core investment for Nishat Mills, whose principal operations are centered on textiles and related businesses.
The approximately Rs2.05 billion consideration provides the group with additional liquidity, although the amount remains relatively modest compared with the overall scale of Nishat Mills.
More importantly, the exit removes the company’s exposure to the dairy joint venture and any future capital or operating requirements associated with the investment.
The transaction will ultimately depend on the completion of regulatory approvals and transfer formalities. Once completed, Sütaş will take full control of the stake currently held by Nishat Mills.