Lahore: Nishat Mills Limited announced a strategic shift in its business operations on August 19, 2026, as the Board of Directors resolved to divest the company's entire stake in Nishat Sutas Dairy Limited (NSDL). This decision was made during an emergent board meeting held at the company's headquarters in Lahore.

The board's resolution comes amid challenging market and regulatory conditions impacting the dairy industry, which have placed significant financial strain on the company. The directors concluded that exiting their investment in NSDL, a joint venture with the Turkish dairy giant Sütas Süt Ürünleri A.S., is in the best interest of the company and its shareholders. Nishat Mills Limited currently holds 49.10% of NSDL's total paid-up share capital.

The proposed divestment, which is subject to shareholder approval and regulatory compliance, involves selling the shares at Rs. 5 per share to their joint venture partner, Sutas. This transaction aims to sustain foreign investment in Pakistan's economy and underscores the commitment of foreign investors to the country's dairy sector.

According to information available from the Pakistan Stock Exchange (PSX), the proposed divestment aligns with the company's strategic objectives and reflects a significant move in its investment portfolio.

Sutas has expressed its willingness to acquire Nishat Mills' shareholding in NSDL, contingent on the execution of definitive transaction agreements and requisite approvals. This acquisition highlights the continued interest of international investors in Pakistan's dairy industry.

An Extraordinary General Meeting (EGM) of Nishat Mills Limited is scheduled for September 23, 2026, at the Emporium Mall in Lahore. Shareholders will vote on the proposed divestment during this meeting. The notice for the EGM will be distributed separately.

The company's share transfer books will be closed from September 17 to September 23, 2026, to facilitate attendance and voting at the EGM. Shareholders must ensure that their physical transfers and CDS Transaction IDs are submitted by 1:00 p.m. on September 16, 2026, to be eligible for participation.