KUALA LUMPUR: China Stationery Ltd (CSL) has proposed to
acquire 50 million shares in Pelikan International Corporation Bhd, representing a 9.79 per cent equity interest, from Mahir Agresif (M) Sdn Bhd and Persada Bina Sdn Bhd for RM50 million.

CSL in a filing to Bursa Malaysia today said the proposed acquisition will be satisfied by the issuance of up to 47,169,812 new shares at an issuance price of RM1.06 per share and an additional three million new shares as payment for
the professional fees.

CSL said the proposed acquisition would provide a pathway for both companies to work together to grow the business in the sales, distribution and procurement of Pelikan's stationery products in the markets and to fully leverage on CSL's
strong market network and access in China.

"It is also envisaged that the proposed acquisition will enhance the strategic collaboration between the two companies and will provide and create synergy and value-added enhancement to the parties in terms of sharing resources, market insights and networking," it said.

It added that these will lead to cost effectiveness in the operation of the respective groups. -- BERNAMA