April 25, 2019 (MLN): The Board of Directors of Packages Limited, in its meeting held on April 24, 2019, has evaluated and approved structure of internal restructuring/reorganization of various businesses of the Company, with an objective to create a holding company.
According to the notification sent to Pakistan Stock Exchange, the proposed arrangement will help in developing operating synergies across businesses, managing operations in a focused manner and streamlining the ownership structure. This is in line with international practices being followed in the corporate world.
In this regard, it has 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, the notice added.
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