IGI Holdings Limited (IGIHL) – formerly IGI Insurance Limited – has entered into a Share Purchase Agreement (SPA) with Stora Enso AB, a European provider renewable products, to acquire 6.04% shareholding in Packages Limited for Rs2.63 billion (~ $9.47 million).
IGI shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“In our letter dated February 22, 2024 to the PSX whereby it was notified that the Board of Directors of IGI Holdings Limited (IGI) had accorded its approval to acquire 6.04% shareholding in Packages Limited (Packages), a listed associate concern of IGI, by way of acquisition of 5,396,650 ordinary shares from Stora Enso AB.
“We wish to inform you that IGI has entered into a Share Purchase Agreement (SPA) with the seller for the acquisition of the aforementioned shares, at Rs487.5 per share,” read the notice.
The company informed its stakeholders that completion of the transaction is subject to the applicable regulatory approval(s) and the terms and conditions as stipulated in the SPA.
The notice sent IGIHL’s share price higher during intra-day trading. IGIHL’s share price rose to Rs181 around 10:03am up from Rs175.1. At the time of filing, the share was trading at Rs179.6, an increase of Rs3.18 or 1.8%.
Packages Limited is also a public listed company established as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden in 1957.
Initially, PKGS was engaged in converting paper and paperboard into packaging for the consumer industry. Over the years, the company has enhanced its facilities to provide various packaging solutions to several consumer brands across sectors.
It is also a leading manufacturer of tissue paper products.
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