Packages Limited approves redemption of 2mn IFC preference shares

Packages Limited (PKGS), Pakistan’s largest paper and board producer, said on Wednesday that it had approved the redemption of 2,000,000 preference shares/convertible stock held by the International Finance Corporation (IFC), based in Washington D.C., as requested by IFC.

The listed company disclosed development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

A redemption notice is a notification informing investors that an issuer is exercising its right to redeem preferred shares before their maturity date.

“The Board has also authorised the Chief Executive Officer and the Chief Financial Officer of the company to negotiate such redemption price with IFC and to fix the same with mutual consent,” the listed company shared.

It said that currently, there were 8,186,842 preference shares/convertible stock outstanding, which were issued to IFC under the Subscription Agreement dated 25 March 2009.

Earlier in January, PKGS had received a redemption notice from the International Finance Corporation (IFC) for a portion of its outstanding preference shares.

Packages Limited is a publicly listed company incorporated in Pakistan. The company was 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.