Pelikan Shareholders Approve Re-Organization Plan

Pelikan International Corporation Bhd’s shareholders have approved a business re-organization plan which will see the injection of its subsidiaries and assets into its German unit Herlitz AG for RM971 million (€282.7 million, or $428 USD).

The strategy involves Pelikan’s global stationery businesses, which are Pelikan Germany, Pelikan Belgium, Pelikan Schweiz, Pelikan Italy, Pelikan Japan, Pelikan Middle East, Pelikan Mexico, Pelikan Colombia, Pelikan Argentina and its logistics property.

As reported by the Sun daily, the prospectus also includes the proposed cash issuance of 32.9 million new Herlitz shares at a cash offer price of €1 (USD$1.514) 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.

In total, the assets involved generated a turnover of RM1.016 billion (€295 million), representing 70.5% of the Pelikan Group’s turnover for the financial year ended Dec 31, 2013.

Also, Pelikan will be issued 231.2 million new shares in Herlitz for the injection of assets.

Loo Hooi Keat, President and CEO of Pelikan, said in a statement, “The group is expected to raise RM390 million (€92.9 million) and realize an estimated gain of RM130 million (€30.95 million) upon the completion of the proposed scheme.”