Friday 14 Jun 2024
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KUALA LUMPUR (April 11): Pelikan International Corp Bhd clarified that it had received several "expressions of interest" related to the acquisition of its assets and businesses, but no definitive agreements had been finalised yet. 

The stationery maker was responding to an article that appeared in the April 10 issue of The Edge Malaysia weekly, which stated that Pelikan is looking to seal a divestment deal that could fetch some RM500 million in cash. 

The article, among others, stated that if the deal is successful, Pelikan will exit its core stationery business, which is the 180-year old Pelikan brand from Germany. 

In response, the company said for the time being, there are no definitive agreements finalised and presented to the board of directors for consideration. 

Pelikan said in a local bourse filing on Tuesday (April 11) that it constantly explores and evaluates opportunities to maximise shareholder value, including evaluation of mergers and acquisitions, as well as divestment of assets and businesses. 

“In these circumstances, the main objective of the company is to realise transactions that are in the best interests of shareholders, and achieve valuations above its net asset value,” Pelikan added. 

It also highlighted that the overall Pelikan group’s performance and profitability had improved over the years since its asset streamlining exercise in 2014. 

“[There were] disposals of loss-making businesses and non-core assets, with the last one being the disposal of a logistics property asset raising €81 million (RM357.9 million) at the end of 2021. 

“These led to an improvement in the group’s balance sheet, with lower borrowings and also enhancement of shareholder value, via a distribution of a 20 sen special dividend in January 2022,” it added. 

The company further said that it will make the appropriate announcements to Bursa Malaysia Securities Bhd in accordance with the Main Market Listing Requirements should there be any definitive agreement or developments. 

Shares in Pelikan gained 0.65% or half a sen to 77 sen per piece at the close on Tuesday, giving the company a market value of RM465.26 million. 

Edited ByIsabelle Francis
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