Stationery manufacturer Pelikan International Corp Bhd (PICB) became the second most profitable counter during the Bursa Malaysia trading session this morning after the company announced its plan for a special cash distribution to its shareholders following the sale of a logistics center in Germany.
At 9.26am, the company's shares jumped 3.5 sen or 9.09% to 42 sen with 28.06 million shares traded. The company is worth RM232.23 million.
Yesterday, Pelikan announced the disposal of its logistics center in the amount of 81 million euros.
Pelikan through a notification to Bursa Malaysia said, its subsidiary, Pelikan Group GmbH (PGG) has entered into a conditional sale and purchase agreement with HE4 Falkensee 1 S.à r.l. and HE4 Falkensee 2 S.à r.l to dispose of its logistics center located at Straße der Einheit, Falkensee, Germany.
Based on Pelikan's audited combined financial statements for the financial year ended 31 December 2020 (FY20), the disposal is expected to provide a one-off profit of an estimated RM184.83 million.
Pelikan added, the proceeds from the disposal will be used to repay bank loans, working capital requirements, cost estimates and expenses for internal restructuring.
“The disposal will enable the group to leverage on its capital assets as long -term assets and realize the value of the property at fair market value as well as strengthen its financial position.
“These considerations will be used primarily for the group’s working capital needs; rewarding shareholders through special cash distributions; restructuring of internal operations; and partial repayment of bank loans, therefore, this as a whole will increase profits and reduce its financing costs, ”the statement said as reported by Bernama.
