The Lahore High Court has sanctioned a scheme of arrangement between Nishat Chunian Power Limited (NCPL) and Nishat (Chunian) Limited (NCL), effective November 1, 2024.
Under this arrangement, Nishat Mills Limited (NML) will transfer its shares in NCL to Shahzad Saleem. In exchange, Shahzad Saleem will transfer a proportionate shareholding in NCPL to NML, based on an agreed swap ratio of 1.93 NCPL shares for each NCL share.
This share exchange will result in Shahzad Saleem’s NCPL holding reducing to 1.72 million shares, while NML’s stake in NCPL will increase significantly to 88.63 million shares. Conversely, Shahzad Saleem’s shareholding in NCL will rise to 87.80 million shares, with NML exiting its position in NCL.
With NCPL’s strong cash position of PKR 12.45 per share as of September 2024, dividend distribution was delayed pending the scheme’s approval. Following the High Court’s sanction, dividends are now anticipated from December 2024, with Optimus Research projecting a potential payout of PKR 4.00 per share for FY25 and the possibility of a substantial one-time dividend.
This restructuring is expected to impact NML’s and Shahzad Saleem’s portfolios, while enhancing NCPL’s financial appeal through likely dividend distributions.
In May 2024, the Board of Directors of Nishat Mills Limited initially approved the scheme, aimed at restructuring its investments in Nishat Chunian Limited (NCL) and Nishat Chunian Power Limited (NCPL) to potentially alter the terms of equity investments in these entities. Â
In September, the Competition Commission of Pakistan (CCP) also approved the internal restructuring involving NCL, NCPL, Nishat Mills Limited (NML), and NCL’s CEO Shahzad Saleem, as part of efforts to streamline the corporate structure of the Nishat Chunian Group.
