Packages Limited approves redemption of 2 million IFC preference shares

Packages Limited has approved the redemption of 2 million preference shares held by the International Finance Corporation (IFC), following a request made by the World Bank arm, according to a disclosure filed with the Pakistan Stock Exchange (PSX) on Wednesday.

The decision was taken at the company’s board meeting held on January 27, 2026, after IFC issued a formal redemption notice on January 23 under a long-standing subscription agreement signed in March 2009.

The board has authorised the company’s chief executive officer and chief financial officer to negotiate and finalise the redemption price with IFC through mutual consent. The company did not disclose the financial terms of the transaction.

As of now, IFC holds 8,186,842 preference shares or convertible stock in Packages Limited. The approved redemption will reduce IFC’s outstanding holding by 2 million shares.

On January 26, Packages Limited received the redemption notice from IFC, seeking redemption of its preference shares issued under the 2009 subscription agreement. The notice covered 2 million shares out of IFC’s total holding of 8,186,842 preference shares or convertible stock in the company.

At the time of receiving the notice, Packages Limited had informed the Pakistan Stock Exchange that the request would be placed before its board for consideration.

In 2019, IFC announced a $50 million equity investment in Packages Limited, citing the company’s role in employment generation and its position in Pakistan’s manufacturing sector. The investment was aimed at strengthening the company’s capital structure and improving cost efficiency.

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