Merit Packaging Limited to Hold Extraordinary General Meeting for Asset Disposition

Karachi, Merit Packaging Limited, a leading packaging company listed on the Pakistan Stock Exchange, has announced the schedule for an Extraordinary General Meeting (EGM) to be held on February 15, 2024. The meeting, set to take place at 3:00 p.m. at the PSX Auditorium in Karachi as well as through a video-link facility, aims to seek shareholder approval for significant asset transactions.

The company has laid out detailed resolutions for shareholder voting, involving the disposal of a substantial portion of its assets located at 17-B, Sector 29, Korangi Industrial Township, Karachi. The assets in question comprise land measuring 17,111.11 square yards and a factory building covering approximately 140,220 square feet. The proposed sale, valued at PKR 1,554,592,000, is to be executed with SIZA Services (Private) Limited, a related party, with the intention of partially settling the company’s pressing liabilities.

Additionally, the resolutions include authorization for the Board of Directors to negotiate and finalize the terms of the sale, including executing all necessary agreements, deeds, and documents to effectuate the asset transaction. The Board is also empowered to handle the legal and procedural aspects of the sale, ensuring compliance with relevant regulations and the completion of the sale process.

Another key resolution seeks shareholder consent for leasing the same property to continue the company’s business and manufacturing activities, highlighting the company’s strategic approach to manage its physical assets while ensuring operational continuity.

Shareholders are provided with detailed instructions for voting via ballot paper, emphasizing the importance of their participation in the decision-making process. The company has made provisions for postal ballots to be sent to the Chairman’s office by February 14, 2024, ensuring that shareholder voices are heard and considered in these significant corporate decisions.

This EGM represents a critical juncture for Merit Packaging Limited as it navigates through strategic asset management to bolster its financial standing and operational efficiency.