Pelikan gets nod for revamp. (The Star) SHAH ALAM: Pelikan International Corp Bhd shareholders have given the greenlight to the company’s proposal to streamline its assets and unlock the value for 231.2 million euros (RM971mil), which will see its cash per share increase from 22 sen to RM1.00 upon completion. ----------------- Profit.at.Bursa ----------------- After the company’s EGM, its president and chief executive officer Loo Hooi Keat (pic) said the company would be in a position to distribute the extra cash to its shareholders after the corporate exercises that included private placement, contribution in kind, cash issue and offer for sale. However, that will only come after repaying some of its bank borrowings and considering its working capital. Of the RM390mil raised from the corporate exercise, the company had earmarked RM125mil for business development, RM125mil for working capital, RM120mil for the repayment of bank borrowings and RM20.05mil for expenses related to it. “After the restructuring, Pelikan International Corp Bhd will become a holding company and at this level, we might not require as much working capital compared to the subsidiary level,” he said, without indicating the quantum of the potential dividend. To recap, the company had proposed to transfer RM1.05bil worth of global assets, as appraised by independent auditor PricewaterhouseCoopers Berlin, to its 71.32%-owned Germany-listed subsidiary Herlitz AG at a 7.2% discount. Herlitz will issue 231.2 million new shares in the company to Pelikan for one euro each for the said assets. That included the issuance of 32.9 million new Herlitz shares at one euro and an offer for sale of up to 60 million Herlitz shares at a minimum price of one euro each, that will result in RM390mil raised for the group. Loo said the streamlined enlarged entity would be more appealing to foreign investors and it would thrive on its efficiency by focusing on distribution instead of manufacturing. “The returns will be faster if you compare to other well-known brands like Apple who also don’t have any manufacturing plants of their own,” he explained. The stationery maker will also focus on its branding and new products on top of enhancing its presence in the Latin American markets. Pelikan’s net gearing will also reduce from 0.72 times to 0.38 times post-restructuring and will dilute Pelikan’s shareholdings in Herlitz to 63.1%, which in turn will reduce earnings contribution from the latter to the former. The resolution was duly passed yesterday. Its Switzerland-listed subsidiary Pelikan Holding AG will hold a general meeting to pass the resolution today while Herlitz will hold the meeting on Friday. Commenting on how the fluctuation in foreign exchange would impact the deal, he said a stronger euro would mean that it would be able to raise more money. That said, the company has a 40 million loan denominated in US dollar, which will offset the potential gains from the corporate exercise. The euro and USD have strengthened 3.12% and 3.89% against ringgit, respectively. Pelikan shares rose 2 sen to 99.5 sen with 294,300 shares changing hands. ----------------- Profit.at.Bursa ----------------- | #saham | #pelikan |
Posted on: Thu, 18 Dec 2014 11:21:00 +0000
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