Pelikan shareholders approve re-organisation scheme

PETALING JAYA: Pelikan International Corp Bhd's shareholders have approved the proposed business re-organisation, which will see the injection of its subsidiaries and assets into its German unit Herlitz AG for €231.2 million (RM971 million) at an EGM yesterday.
Pelikan will in turn be issued 231.2 million new shares in Herlitz for the injection of assets.
The consideration value represents a discount of €18 million or 7.2% to the valuation of €249.2 million by PricewaterhouseCoopers (PwC) Berlin, the independent auditor appointed by Germany's court of register to audit the valuation of the subsidiaries and assets of the Pelikan Group that are to be injected into Herlitz.
"The group is expected to raise RM390 million and realise an estimated gain of RM130 million upon the completion of the proposed scheme," Pelikan president and CEO Loo Hooi Keat said in a statement yesterday.
Assets involved in the scheme comprises the group's worldwide stationery businesses, namely Pelikan Germany, Pelikan Belgium, Pelikan Schweiz, Pelikan Italy, Pelikan Japan, Pelikan Middle East, Pelikan Mexico, Pelikan Colombia, Pelikan Argentina and its logistics property.
In total, the assets involved generated a turnover of RM1.016 billion, representing 70.5% of the Pelikan Group's turnover for the financial year ended Dec 31, 2013.
The scheme also includes the proposed cash issuance of 32.9 million new Herlitz shares at cash offer price of €1 per share and proposed offer for sale by Pelikan Group of up to 60 million Herlitz shares at a minimum of price of €1 per share.
The fund-raising will reduce Pelikan International's gearing to 0.38 times and while its its cash per share will be raised to RM1 from 22 sen as at the end of 2013 while overall net asset per share improves to RM1.31 from RM1.06.