IFC seeks redemption of 2 million preference shares in Packages Limited

Packages Limited has received a redemption notice from the International Finance Corporation, a member of the World Bank Group, seeking redemption of 2 million preference shares out of its total outstanding holding in the company, according to a filing submitted to the Pakistan Stock Exchange on Monday.

The notice, dated January 23, 2026, relates to preference shares issued to IFC under a subscription agreement signed in March 2009, under which IFC holds 8,186,842 preference shares or convertible stock in Packages Limited.

“Packages Limited (hereinafter referred to as “Company”) has received a Redemption Notice dated 23 January 2026 from International Finance Corporation, Washington D.C., U.S.A. (“IFC”) to redeem 2,000,000 (Two Million) Preference Shares/Convertible Stock out of the outstanding 8,186,842 Preference Shares/Convertible Stock issued to IFC under the Subscription Agreement with IFC dated March 2009 read with Annexure to the Articles of Association of the Company,” read the notice. 

The company said the redemption request will be taken up for consideration at its board meeting scheduled for January 27, 2026, which will be held in Karachi.

Packages Limited has also submitted a disclosure form in compliance with the Securities Act, 2015 and relevant PSX regulations, and requested the exchange to disseminate the information to market participants.

The filing did not disclose the financial terms or pricing of the proposed redemption, which will be determined subject to board approval.

In 2019, the IFC announced a $50 million equity investment in Packages Limited, citing the company’s role as a socially responsible enterprise with a workforce of nearly 3,500 direct employees and around 27,000 indirect jobs. At the time, the IFC said the investment was aimed at strengthening Packages Limited’s capital base, improving cost efficiency, and enhancing its resilience against the impact of the global economic downturn.

Packages Limited is a public limited company incorporated in Pakistan. It is principally engaged in the manufacture and sale of packaging materials and tissue products.