Today Pelikan announced an EGM to vote for An Asset sale
See
Please refer attachment below.
Let us take a look
NOTICE IS HEREBY GIVEN that the Extraordinary General Meeting (“EGM”) of Pelikan International
Corporation Berhad (“PICB” or the “Company”) will be conducted fully virtual basis and entirely
via Remote Participation and Voting facilities provided by Tricor Investor & Issuing House Services
Sdn Bhd via TIIH Online website at https://tiih.online on Friday , 5 November 2021 at 3.00 p.m. for
the purpose of considering, and, if thought fit, passing the following ordinary resolution, with or
without any modifications:-
ORDINARY RESOLUTION
PROPOSED DISPOSAL BY PELIKAN GROUP GMBH (“PGG”), A SUBSIDIARY OF PICB, OF
ITS LOGISTICS CENTRE LOCATED AT STRAßE DER EINHEIT 142-148, 14621 FALKENSEE,
GERMANY FOR A CONSIDERATION OF EUR81,000,000 TO BE SATISFIED ENTIRELY IN CASH
(“PROPOSED DISPOSAL”)AND THE SUBSEQUENT PROPOSED LEASE OF CERTAIN PARTS
OF THE SAID PROPERTY BY PGG (“PROPOSED LEASE”) (“COLLECTIVELY REFERRED TO
AS THE “PROPOSALS”)
“THAT subject to the approvals being obtained from all relevant authorities and/or parties, approval
be and is hereby given to PGG, a subsidiary of the Company, to dispose of the freehold land and
building located at Straße der Einheit 142-148, 14621 Falkensee, Germany (“Property”) to HE4
Falkensee 1 S.à r.l. and HE4 Falkensee 2 S.à r.l. (collectively, the “Purchasers”) for a total cash
consideration of EUR81,000,000, subject to the terms and conditions as stipulated in the Sale and
Purchase Agreement dated 7 July 2021 entered into between PGG and the Purchasers;
AND further, subject to the impleme
PELIKEN IS SELLING A FREEHOLD LAND WITH LOGISTIC ASSETS FOR EUR81,000,000
This was first proposed on July 8 2021
See the details
2.9 Expected Gain Arising from the Proposed Disposal
Based on PICB’s audited consolidated financial statements for the FYE 2020, PICB and its subsidiaries (“PICB Group” or the
“Group”) is expected to realise an estimated one-off gain of RM184.83 million in relation to the Proposed Disposal as follows:-
Disposal Consideration
399,330,000
Less: Audited NBV as at 31 December 2020
(180,997,000)
Estimated expenses for the Proposed Disposal
(12,800,000)
Estimated tax expenses
(20,706,000)
Estimated gain of the Proposed Disposal
Rm184,827,000
NOTE; ASSETBOOK VALUE: RM180.997 MILLIONS
PROFIT FROM DISPOSAL: RM184.827 MILLIONS WHICH MEAN PRICE HAS DOUBLED SINCE ITS PURCHASE.
From the disposal Peliken will get a CASH OF RM399,330,000
How much per share value
Look at the last qtr result & from there we get a short - cut calculation of the Cash proceeds
SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1
Revenue
287,326
255,412
489,736
462,690
2
Profit/(loss) before tax
20,848
20,590
11,458
14,304
3
Profit/(loss) for the period
18,027
20,172
7,148
11,317
4
Profit/(loss) attributable to ordinary equity holders of the parent
17,948
20,096
5,223
11,762
5
Basic earnings/(loss) per share (Subunit)
2.98
3.33
0.87
1.95
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7
Net assets per share attributable to ordinary equity holders of the parent ($$)
0.7700
0.7600
Above results showed Peliken made Rm17.948 Millions which is equal to 2.98 sen a share
So
RM399,330,000 divides by Rm17,948,000 multiply by 2.98
= 22.249 sen x 2.98
= 66.30 sen CASH a Share
Today Peliken closed at 47.5 sen
So at 66.30 its Cash 1.39 times share price
Estimated net profit from disposl is
See
Estimated gain of the Proposed Disposal
Rm184,827,000
= 30.68 sen
This Net Gain of 30.68 sen will be reported in the Qtr when Cash is Received
UTILISATION OF PROCEEDS
Subsequent to the Announcement, the Board wishes to clarify that the total proceeds arising from the Proposed Disposal of EUR81.0 million (equivalent to approximately RM399.33 million) are proposed to be utilised/varied as follows:-
Proposed utilisation
Expected timeframe
for utilisation upon completion
of Proposed Disposal
Repayment of bank borrowings (a)
Within 3 months
RM200,000,000
Working capital requirements (b)
Within 12 months
RM41,290,000
Special dividend (c)
Within 6 months
RM120,640,000
Internal reorganisation related cost (d)
Within 12 months
RM24,600
Estimated expenses (e)
Within 3 months
RM12,800,000
Total proceeds
RM399,330,000
Note: RM120,640,000 will be given out as a Special Dividend
How much per share?
Again the formula is
RM120,640,000 divides by Rm17,948,000 x 2.98
= 6.72 x 2.98
= 20 Sen Per Share
Pelikan will be paying out 20 Sen as Special Dividend
Now Peliken will also use Rm200 Millions from sale proceeds to pare down borrowings. In future this bank interest saving will show up as better profits
Let's take another look at Peliken latest result below
This qtr earns 2.98 sen
Annualized 2.98 x 4
= 11.92
Price is 47.5 sen
P/E = 47.5 / 11.92
= 3.98
So is Pelikan Annualised forward P/E only 3.98?
The honest answer is a no.
Why not?
Because Peliken's business of School stationary is seasonal. It depends on School reopening when Students will buy more pens and stationary. So a more appropriate P/E should be around 10.
With this Asset sale & paring down of debt will Peliken show further improvement in its business?
In any case the Asset disposal is not a One Off gain only. Its Net Asset Value is 77 sen which mean that there is another possibility Pelikan could dispose more assets to unlock value & reward share holders.
Peliken now 47.5 sen
Upside one year target price is Rm1.00 (or its revised NAV of 77 sen to Rm1.00)
Note: this is based on its NAV (revised book value)
Its business if can improve will be added bonus
Best Regards
Calvin Tan
Please buy or sell after doing your own due diligence or consult your remisier/Fund Manager
Please note:
A MUCH BETTER BUY NOW WOULD BE 2ND & 3RD LINER OIL PALM SHARES AS CPO OVER RM5,200 WILL SEE FANTASTIC TURNAROUND FOR ALL OIL PALM RELATED STOCKS
SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1
Revenue
287,326
255,412
489,736
462,690
2
Profit/(loss) before tax
20,848
20,590
11,458
14,304
3
Profit/(loss) for the period
18,027
20,172
7,148
11,317
4
Profit/(loss) attributable to ordinary equity holders of the parent
17,948
20,096
5,223
11,762
5
Basic earnings/(loss) per share (Subunit)
2.98
3.33
0.87
1.95
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7
Net assets per share attributable to ordinary equity holders of the parent ($$)
0.7700
0.7600
PELIKAN INTERNATIONAL CORPORATION BERHAD
Type of Meeting
Extraordinary
Indicator
Notice of Meeting
Description
Pelikan International Corporation Berhad ("PICB")
- Notice of the Extraordinary General Meeting to be conducted on fully virtual basis and entirely via Remote Participation and Voting facilities
Date of Meeting
05 Nov 2021
Time
03:00 PM
Venue(s)
Online Meeting Platform via TIIH Online website at https://tiih.online
provided by Tricor Investor & Issuing House Services Sdn Bhd
Malaysia
Date of General Meeting Record of Depositors
27 Oct 2021
Resolutions
1. Ordinary Resolution
Description
Proposed disposal by Pelikan Group GmbH, a subsidiary of PICB, of its logistics centre located at Straße Der Einheit 142-148, 14621 Falkensee, Germany for a consideration of EUR81,000,000 to be satisfied entirely in cash and the subsequent proposed lease of parts of the property by Pelikan Group GmbH from HE4 Falkensee 2 S.àr.l.
PELIKAN will call for EGM on Nov 5 2021 to vote for Asset Disposal to Sell Lands & Assets & then give A Special Dividend of 20 sen
The salient factors of the Asset Disposal
1) It will get about Rm399 Millions which translate to 66 sen a share
2) Of these about 30 sen is Profit (About 100% profit from Purchase) This shows that Pelikan not only derive its profit from selling stationary - it is also sitting on Assets which have appreciated in Value (That is why Calvin like Oil palm Stocks: There is a double edged growth from Palm oil business as well as the precious lands on which oil palms are planted. They will appreciate over the years.
3) And out of the Rm399 Millions Pelikan will use Rm200 Millions to pare down debts
4) About Rm120 Millions or 20 sen will be given out as "Special Dividend"
Isn't this much better than many who ask you for money by "rights issue" to raise capital for business expansion?
In Pelikan case you are receiving money. And there is still a surplus 10 sen for more Business enterprize.
5) Both Pelikan & those who gave "Rights Issue" are looking to expand business enterprize.
In Peilkan case they get money from Assets of Value "Already in Hand" to make more money out there. For those companies that gave out "Rights Issue" to ask you for money also got the intention to make more money out there.
But Pelikan still got 4 other Assets of Value to dispose and unlock value (While others are looking to get value out there)
So Pelikan is like a bird already in hand while others might be still looking for "2 birds" in the bush, so to say
It is all Right to Sell Assets to unlock needed capital to pare down bank loans, to get capital for business expansion & also to give out "Surplus Cash" as a reward to shareholders.
That was what Datuk Hilmey of Htpadu did. Htpadu sold its HQ Building to give out "Special Dividends". We saw Boss of Htpadu bought & so we followed him buy Htpadu around 70 sen. Today Htpadu is Rm1.25. So don't chase Htpadu.
And just as Datuk Hilmey of Htpadu bought in those days WE SEE TODAY THAT PELIKAN INSIDER BOSS HAS BEEN BUYING PELIKAN SHARES
See
PELIKAN: A BIRD IN HAND IS BETTER THAN TWO IN THE BUSH
Warm regards
Calvin Tan
Singapore
Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
The Best is to buy when there is maximum pessimism when every body gives up
And certainly the best time to sell is during euphoria when People Chase It; Newspapers highlight it; Analysts strongly recommend it
5% who bought value stock in Fear better than 95% buying during peak euphoria and will live to regret staying in penthouses
2023-12-15 07:55