KUALA LUMPUR, Malaysia (July 9): Pelikan International Corp Bhd, a stationery company, was the second-most active stock on Bursa Malaysia this morning after it announced intentions for a special cash distribution to reward shareholders following the sale of its German logistics center. With 28.06 million shares traded at 9.26 a.m., it was up 3.5 sen, or 9.09 percent, to 42 sen, almost four times its 200-day average volume of 7.25 million shares. The company was estimated to be worth RM232.23 million.
The business stated yesterday that it has disposed of the property for EUR81 million in cash (about RM400 million).
Pelikan Group GmbH (PGG) said in a bourse filing that it has agreed into a conditional sale and purchase agreement (SPA) with HE4 Falkensee 1 S.a r.l. and HE4 Falkensee 2 S.a r.l. to sell its logistics center at Strasse der Einheit in Falkensee, Germany.
PGG and HE4 Falkensee 2 S.a r.l also signed into a conditional lease agreement at the same time, with the latter agreeing to remain as a tenant of the rental property for a five-year lease period beginning on the proposed disposal’s completion.
The annual gross lease cost for the rental property is EUR4.15 million (about RM20.46 million) and is paid on a monthly basis.
The disposal is expected to generate a one-time gain of RM184.83 million, according to Pelikan’s audited consolidated financial results for the financial year ending December 31, 2020 (FY20).
“The disposal consideration will primarily be used for the group’s working capital requirements, rewarding shareholders through special cash distributions, further internal reorganization, and partial repayment of its bank borrowings, thereby enhancing overall profitability and lowering its financing cost,” it said.
According to Pelikan, RM200 million will be utilized to repay bank loans, RM161.93 million for operating capital, and RM24.6 million for internal reorganization from the RM399.33 million earnings.
The property sale is planned to reduce the company’s gearing ratio to 0.31 times from 0.86 times in FY20, while also increasing profits per share to 32.53 sen from 1.89 sen.
Pelikan sells a logistics center in Germany for RM399.33 million and proposes a special cash distribution/n
