Pelikan Group GmbH (PGG), a subsidiary of Pelikan International Corp Bhd (PICB), has entered into a conditional sale and purchase agreement with HE4 Falkensee 1 S.Ã r.l. and HE4 Falkensee 2 S.Ã r.l. to dispose of its logistics center in Germany for 81 million euros (RM399.33 million).
In a filing to Bursa Malaysia today, PICB said the proceeds from the disposal would 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 tied up capital as a long -term asset 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 company'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.
The company expects the proposed disposal to be finalized by the last quarter of 2021.
Trading in Pelikan shares was also suspended from 9 to 10 this morning.
The counter declined by 3.5 sen or 7.69% to 42 after its trading resumed, bringing its market value to RM218.92 million.
Yesterday, the counter closed 9.5 sen or 26.39% higher at 45.5 sen.
