KUALA LUMPUR (Sept 6): Pelikan International Corp Bhd (PICB) is to hold its extraordinary general meeting (EGM) on Sept 20 for shareholders to vote on the disposal of the company’s stake in German-based stationery producer and distributor Pelikan Group GmbH to Holdham SAS for €136 million (RM695.44 million) cash.

According to a bourse filing, PICB’s shareholders are to also vote distribution of part of the disposal consideration to its shareholders via capital reduction cum repayment.

This will involve the cancellation of RM452.4 million of its issued capital, and the proceeds arising from the cancellation will be used to repay shareholders by way of a cash distribution of 75 sen per share.

When it announced the proposed deal in June, PICB said it would use RM182.71 million of the RM695.44 for working capital, settlement of liabilities, repayment of bank borrowings, and to cover estimated expenses from the proposed exercise.

It said it would distribute the remaining RM512.72 million within six months from the completion of the sale — which will take place no later than Oct 31, 2023 — via a special dividend and/or a capital repayment.

Shareholders holding at least 75% of the company’s total issued shares must approve the proposals for the resolutions to pass.

The company intends to maintain its listing status after the divestment.

Urusharta Jamaah Sdn Bhd is the company’s largest shareholder with 157.19 million shares or a 25.85% stake.

Its other substantial shareholders are PICB president and CEO Looi Hooi Keat with an 18.23% stake, followed by Ikhlas Capital Master Fund Pte Ltd and Ikhlas Capital Singapore Pte Ltd with 9.02% via Merit Plus Ventures Ltd, and Marktrade Sdn Bhd with 5.52% via PBS Office Supplies Holdings Sdn Bhd.

Shares in PICB ended unchanged at 85.5 sen on Wednesday, giving the company a market capitalisation of RM516.93 million.

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Pelikan announces sale of stationery biz for RM695 mil, distribution of proceeds to shareholders