IGI Holdings Acquires 6.04% Stake in Packages Limited for Rs2.63 Billion

In a significant move within the Pakistani corporate landscape, IGI Holdings Limited (IGIHL), previously known as IGI Insurance Limited, has announced its intention to acquire a 6.04% stake in Packages Limited. This acquisition is valued at approximately Rs2.63 billion, which is around $9.47 million. The announcement was made through a notice to the Pakistan Stock Exchange (PSX) on Tuesday, marking a pivotal moment for both companies involved.

According to the notice, IGIHL has entered into a Share Purchase Agreement (SPA) with Stora Enso AB, a European company known for its renewable products. The agreement involves the purchase of 5,396,650 ordinary shares of Packages Limited at a price of Rs487.5 per share. This strategic acquisition is expected to enhance IGIHL's portfolio, as Packages Limited is a well-established public company that has been operational since 1957.

Packages Limited, a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, initially focused on converting paper and paperboard into packaging solutions for the consumer industry. Over the years, the company has expanded its capabilities, providing a wide range of packaging solutions to various consumer brands across different sectors.

The announcement of this acquisition has positively impacted IGIHL’s share price, which saw an increase during intra-day trading. The share price rose to Rs181 around 10:03 AM, up from Rs175.1, reflecting investor confidence in the strategic direction of the company. At the time of reporting, the share was trading at Rs179.6, marking an increase of Rs3.18 or 1.8%.

It is important to note that the completion of this transaction is contingent upon obtaining the necessary regulatory approvals and adhering to the terms outlined in the Share Purchase Agreement. This acquisition not only signifies IGIHL's commitment to expanding its business interests but also highlights the ongoing growth and evolution of the packaging industry in Pakistan.

The acquisition of a stake in Packages Limited by IGI Holdings Limited is a noteworthy development that underscores the dynamic nature of the Pakistani market. As companies continue to adapt and grow, such strategic moves are essential for fostering innovation and enhancing competitiveness. Stakeholders and investors alike will be keenly watching how this acquisition unfolds and what it means for the future of both IGIHL and Packages Limited.