Nishat Hotels Withdraws PAI For Rafhan Maize Deal, But Acquisition Plan Stays Alive
Nishat Hotels and Properties Limited has formally withdrawn its Public Announcement of Intention (PAI) to acquire Rafhan Maize Products Company Limited. However, the company has clearly stated that it still plans to go ahead with the Rafhan Maize transaction once all legal and regulatory conditions are fulfilled.
How The Rafhan Maize Deal Started
The story of this deal began in May 2025 when Nishat Hotels announced its intention to acquire a majority stake in Rafhan Maize. The company, along with associated entities, planned to buy up to 75.69% shares and gain management control of Rafhan Maize Products Company Limited. For the market, this was a major development because Rafhan Maize is one of Pakistan’s leading players in corn‑based starches and food ingredients.
Original PAI And Extended Timeline
Nishat Hotels issued its original PAI on May 16, 2025, in line with takeover regulations. Under the rules, the acquirer normally has 180 days to move from the intention stage to a formal public offer. Later, Nishat secured an extension of 90 days, which moved the deadline for making the public announcement to February 10, 2026.
Why The Existing PAI Has Been Withdrawn
In a formal notice to the Pakistan Stock Exchange (PSX), Nishat Hotels explained that certain regulatory approvals and conditions precedent under the transaction documents were still pending. Since those conditions were unlikely to be completed before the extended deadline, the company chose to withdraw the existing PAI rather than force the process. The move is being made under Regulation 21(1)(e) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, and the relevant provisions of the Securities Act, 2015.
What “Withdrawal Of PAI” Actually Means
For many investors, the phrase “withdrawal of PAI” can sound like the deal has been cancelled. In this case, Nishat Hotels has tried to remove that confusion. The company has clarified that the withdrawal is a technical and procedural step, taken only because the regulatory timeline could not be met, and not because it has lost interest in Rafhan Maize.
Nishat Hotels Reaffirms Interest In Rafhan Maize
Alongside the withdrawal, Nishat Hotels has repeated that it remains fully committed to acquiring Rafhan Maize once all approvals and conditions are in place. The company intends to continue working with regulators and advisors so that the transaction can move forward in a legally compliant way.
Plan To Issue A Fresh PAI Later
Nishat Hotels has also announced its plan to issue a fresh PAI in the future. According to the statement, a new public intention will be published after the pending conditions are resolved, and it will again be notified through the PSX and advertised in newspapers as required by law. This means that investors should watch out for a new timeline rather than expecting immediate offer documents.
Why Nishat Hotels Wants Rafhan Maize
Nishat Group already has a strong presence in textiles, banking, cement, energy and hospitality. By adding Rafhan Maize, the group can deepen its exposure to the food and agribusiness sector, which has long‑term demand and export potential. For Nishat Hotels and Properties specifically, the acquisition can diversify earnings beyond hotels and real estate by bringing in a stable industrial business.
Possible Benefits For Rafhan Maize
If the transaction is completed, Rafhan Maize could gain access to a larger group platform, more capital and wider market reach. Being part of the Nishat ecosystem may help Rafhan Maize explore new product lines, improve capacity and even look at regional exports more aggressively. For minority shareholders, a successful offer could also unlock value, depending on the final offer price and structure.
What Investors Should Keep In Mind
For now, the withdrawal of the PAI simply means that the current offer cycle has ended and a new one will start later. Shareholders of Rafhan Maize and followers of the Nishat Group should monitor:
- Any new announcements on the PSX
- Updates on regulatory approvals
- Details of a fresh PAI, including price, number of shares, and timelines
Until then, the market is likely to treat the deal as “delayed but not dead.”
