Pelikan International has announced that the group has entered into a share purchase agreement for the disposal of its German arm Pelikan Group GMBH for Euro 136 Million or approximately RM695 million.
The group will be disposing its overseas business to Holdham SAS of its entire equity interests held in PGG for a cash
consideration and assignment to the Purchaser, debts owing from PICB group to PGG amounting to €15,401,000 as at 31 December 2022.Thsi will also include the disposal by PHAG of its entire limited partnership interest in PPG (including any
capital accounts related thereto) for a cash consideration of €1.00 or approximately RM5.111
The Proposed Disposal is a major disposal pursuant to Paragraph 10.11A of the Main Market Listing Requirements issued by Bursa Malaysia Securities Berhad. Accordingly, Kenanga Investment Bank Berhad has been appointed by the Company as the Independent Adviser to advise the shareholders of the Company on whether the terms of the Proposed Disposal are fair and reasonable.
PGG was founded by Carl Herlitz in 1904 under the name “Carl Herlitz” and incorporated under the laws of Germany, having its registered office in Berlin, registered in the commercial registry of Charlottenburg under number HRB 192258 B. Herlitz was first registered on 8 December 1972 by way of conversion of the retail business of Carl Herlitz into a stock company initially named Carl Herlitz Aktiengesellschaft. The PGG group of companies distributes a wide range of paper, office supplies, stationeries and fine writing instruments worldwide with key markets in Europe, Latin America Middle East and Asia.
PICB acquired the stationery business in 2005 and had since held and managed the business for over 18 years. During this period, the stationery industry has evolved significantly from distribution channels, production technology, and also the impact of technology on the usage of stationery.
Pelikan said it chose to dispose of the company due to changes in distribution channels, the level of distribution becomes shorter but more complex to the customers. The Group needs to serve more direct channels such as key accounts, business-to-business, business-to-customers and online channels which results in high complexity and margin pressures.
