Nishat Mill Limited, who recently announced its entry in the automobile sector, will be selling 40 percent of its stake in its auto assembling business to Sojitz Corp.
The company informed Pakistan Stock Exchange (PSX) that the Japanese giant would be acquiring 40 percent of their auto manufacturing stake. The filling with authority stated:
“Nishat Mills Limited has entered into share subscription & shareholder agreement with the Japanese firm for equity participation to the extent of Rs40 million for the acquisition of 40 percent stake in NML’s wholly owned subsidiary HNM (Hyundai Nishat Motors).”
Earlier this year, the company announced that it would manufacture Hyundai vehicles in Pakistan. The Auto Development Policy 2016 paved the way for many foreign brands to enter the Pakistani market where Nishat partnered with Hyundai for branching into auto manufacturing.
The two companies together will set up a greenfield project for assembly and sales of HMC passenger and 1-ton range commercial vehicles in Pakistan.
Mian Mansha, Chairman of Nishat Group, previously said that Hyundai wants to start off with the assembly of small cars, capable of competing with the existing Japanese assemblers in the market.
He also revealed that they are trying to convince Hyundai to bring electric and hybrid cars in Pakistan. The company could import in the initial phase and can move on to assembling them locally in the country.