KUALA LUMPUR (Aug 23): Pelikan International Corp Bhd has proposed to pay €3.72 million (RM18.74 million) in cash to minority shareholders via a squeeze-out exercise at its German-based Pelikan AG.

The squeeze-out deal to boot the minority shareholders out and subsequently delist Pelikan AG from the Frankfurt Stock Exchange, works out to €1.11 per share.

"Pelikan AG is expected to convene a general meeting to pass the resolution to transfer the shares held by the minority shareholders of Pelikan AG to Pelikan as majority shareholder in return for the cash compensation," the stationery product producer said in a filing with Bursa Malaysia.

Pelikan expects its German unit to convene a general meeting on Oct 6.

On March 9, Pelikan announced its plan to squeeze out the minority shareholders at Pelikan AG, saying this and the delisting exercise will "facilitate the ease of management and direction of Pelikan AG".

Pelikan currently owns a 98.62% stake in Pelikan AG, while the remaining 1.38% stake is in the hands of the minority shareholders.

Separately, Pelikan announced that its net profit for the second quarter ended June 30, 2017 dropped 13% to RM16.85 million from RM19.37 million a year earlier, while revenue was flat at RM358.42 million against RM361.28 million previously.

For the first half of the year, Pelikan's net profit dropped 22% to RM17.86 million from RM22.99 million a year ago, while revenue came in 2% higher at RM621.01 million against RM612.11 million previously.

On prospects, Pelikan said it plans to streamline its product mix and offerings to customers, which forms part of its plan to "improve profitability and reduce business complexity and cost".

Shares in the Main Market-listed Pelikan dropped one sen or 1.18% to close at 84 sen, for a market capitalisation of RM460.63 million.