March 13, 2020 (MLN): Packages Convertors Limited and Packages Investments Limited, the wholly owned subsidiaries of Packages Limited, have informed that the SECP has approved their respective applications for issuance of shares for consideration otherwise than in cash subject to certain conditions.
Packages Convertors Limited has further informed that it intends to proceed with the transfer of the Converting Business against issuance of shares for consideration otherwise than in cash whereas Packages Investments Limited is currently evaluating different options for the transfer of Investment Business against issuance of shares for consideration otherwise than in cash in the light of approval so granted by SECP.
Accordingly, the Board of Directors of the Company, in its meeting held on March 13, 2020, has resolved to consummate transfer of Converting Business to Packages Convertors Limited and to hold the transfer of Investment Business to Packages Investments Limited for the time being and will finalize the way forward in this regard in the best interest of the Company and its shareholders.
It is imperative to mentioned that this transfer to the company’s wholly owned subsidiary (Packages Convertors Limited) shall not affect the rights of the shareholders of Packages Limited.
To recall, the Board of Directors of the company last year had approved structure of internal restructuring/reorganization of various businesses of the Company, with an objective to create a holding company.
The proposed arrangement was to help in developing operating synergies across businesses, managing operations in a focused manner and streamlining the ownership structure.
In this regard, it had been decided that Packages will incorporate two wholly owned subsidiaries and transfer:
- Its manufacturing businesses including folding cartons, flexible packaging, consumer products and mechanical fabrication & roll covers along with all relevant assets, operations and corresponding liabilities into a separate 100% wholly owned subsidiary
- Its investments business comprising shares of various companies, operations along with corresponding liabilities, if any, into another 100% wholly owned subsidiary against issue of shares by such wholly owned subsidiaries in favor of Packages. The proposed restructuring shall not affect the rights of the shareholders of Packages
Packages will be holding company and all assets, properties and liabilities other than assets, operations and corresponding liabilities being transferred to wholly owned subsidiaries as part of Converting Business and Investment Business will remain with Packages.
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