Nishat Mills Limited (NML) is selling 40 percent stake of its auto assembling business to the Japanese giant Sojitz Corporation, the company informed Pakistan Stock Exchange (PSX) on Thursday through an official notice.
“NML has entered into share subscription & shareholder agreement with the Japanese firm for equity participation to the extent of Rs40 million for acquisition of 40 percent stake in NML’s wholly owned subsidiary Hyundai Nishat Motors,” the bourse filing said.
According to the notice, the dilution of NML’s equity stake in Hyundai Nishat Motor (Private) Limited (HNMPL) in future will be subject to requisite regulatory and other approvals. “HNMPL will inter alia manage and conduct feasibility study for setting up the green field project to undertake the assembly and sale of passenger and one-ton range commercial vehicles in Pakistan,” the notice said. It added that future investments by NML and Sojitz in HNMPL will be based on the outcome of feasibility study and subject to requisite approvals.
Earlier in February, Nishat Mills Limited announced its plans to set up a car assembly plant in the country in a joint venture with Hyundai Motor Company. Hyundai and South Korea’s Kia Motor used to assemble cars in Pakistan until 2004 but they wound up business in Pakistan after their local partner Dewan Farooque Motors Limited went bust.