Thursday 28 Mar 2024
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KUALA LUMPUR: Pelikan International Corp Bhd has received its shareholders’ approval for the proposed business reorganisation scheme at its extraordinary general meeting (EGM) held yesterday.

In a filing with Bursa Malaysia, Pelikan said the group is set to realise an estimated gain of RM130 million and raise total cash proceeds of RM390 million on completion of the scheme. 

The successful fund raising will also serve to strengthen Pelikan’s balance sheet, where gearing would be substantially reduced to 0.38 times.

Its cash per share will also be raised to RM1 from 22 sen as at end-2013, and overall net asset per share improve to RM1.31 from RM1.06. 

“One of the key [reasons for] the exercise is to consolidate the group’s stationery sales and distribution business into Herlitz to create a clearly defined organisational structure of management and business,” said Pelikan president and chief executive officer Loo Hooi Keat. 

“Together with the brands Herlitz, Geha and Susycard, the group would be in a better position to compete and adopt a multi-brand strategy positioning each brand for the right products and markets to maximise sales potential,” he added. 

Pelikan on Nov 10 signed a heads of agreement (HoA) with Herlitz to inject its subsidiaries and assets into Herlitz for €231.2 million (RM971 million) in exchange for the issuance of 231.2 million new shares in Herlitz. 

This consideration value represents a discount of €18 million or 7.2% to the valuation of €249.2 million by PricewaterhouseCoopers, Berlin.

The HoA also includes the proposed cash issuance of 32.9 million new Herlitz shares at a cash offer price of €1 per share, and a proposed offer for sale by Pelikan Group of up to 60 million Herlitz shares at a minimum price of €1 per share.

 

This article first appeared in The Edge Financial Daily, on December 18, 2014.

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