Sütaş seeks full control of Nishat dairy venture as Pakistani partner plans exit

Nishat Mills approves proposed stake sale

Pakistan-listed Nishat Mills Limited has approved a proposal to sell its entire 49.10% interest in Nishat Sütaş Dairy Limited to Turkish partner Sütaş Süt Ürünleri A.Ş., potentially giving the dairy producer full control of the joint venture. The board made the decision at an emergency meeting on 19 August, according to Internethaber and 10Haber.

The proposed price is 5 Pakistani rupees per share. Neither publication disclosed the number of shares covered by the offer or the transaction’s total value. Completion depends on approval from Nishat Mills shareholders, the signing of final agreements and the receipt of the necessary legal and regulatory clearances.

Nishat Mills, which is listed on the Pakistan Stock Exchange, currently owns 49.10% of the dairy company’s paid-up capital. Sütaş has indicated that it is willing to acquire the full Nishat holding and continue Nishat Sütaş Dairy’s operations once the transaction documents and approvals are in place.

Market and regulatory pressure drive the exit

According to both Turkish publications, Nishat Mills cited adverse market and regulatory conditions in the dairy sector and the resulting pressure on its financial position. Its board concluded that withdrawing from the investment was the most appropriate course for the company and its shareholders.

The disclosure does not specify which operating costs, regulations or market developments caused the pressure. It also provides no figures for the venture’s milk intake, processing capacity, revenue, losses, workforce or market share. That limits any assessment of how much production or distribution capacity would come under Sütaş’s sole control.

Even so, the proposed departure of a major Pakistani industrial group is a notable signal for local dairy businesses. It indicates that conditions have become difficult enough for Nishat Mills to consider leaving the joint venture, while Sütaş is prepared to retain the operation and increase its exposure. For farmers, processors and distributors connected to Nishat Sütaş Dairy, operational continuity will therefore depend less on a change in the plant’s stated status than on Sütaş’s strategy after completion.

Shareholders to vote in Lahore

Nishat Mills plans to convene an extraordinary general meeting at Emporium Mall in Lahore on 23 September 2026. Shareholders will consider and decide on the proposed transfer at that meeting. The company’s share transfer books will remain closed from 17 September through 23 September as part of the meeting arrangements.

The timetable means the board’s approval is only an initial step. Until shareholders consent, definitive documents are signed and regulators give their clearances, ownership remains unchanged. The disclosed price of 5 Pakistani rupees per share is therefore a proposed transaction term rather than evidence of a completed acquisition.

Foreign ownership could preserve the operation

Nishat Mills said the transfer could support continued participation by foreign strategic investors in Pakistan’s dairy industry and the wider economy. Sütaş is a Turkey-based international dairy producer and was already the venture’s industrial partner, so the deal would consolidate an existing investment rather than introduce a new operator.

If completed, the transaction would replace shared ownership with control by the Turkish partner. The available disclosures do not identify planned investment, capacity expansion, product changes or workforce measures. The immediate commercial issue is therefore continuity: Sütaş has expressed willingness to keep the company operating, but the scale and direction of its longer-term plans have not yet been stated.