KUALA LUMPUR: Stationery company Pelikan International Corporation Bhd and its key subsidiaries involved in the manufacturing, sales and distribution of re-manufactured toner, inkjet cartridge and nylon ribbons are disposing of business undertakings in Germany, France, the Czech Republic and China for RM30 million.
“The proposed disposal will cut losses to the group and also result in a stable stream of income through royalty earned with the trademark licensing arrangement,” Pelikan said in a filing to Bursa Malaysia.
It said, in the past, the group had streamlined its business into separate core business groups, namely stationery, printer consumable, production and asset holding.
The largest business, the stationery business, is under the corporate group of Pelikan AG and since completing asset streamlining in 2015, has been the largest profit contributor to the Group.
Pelikan AG is set to further grow in the stationery segment as it is now purely focused on a core stationery product assortment and the direction and strategies are clearly adapted to meet the market requirements.
The printer consumable business for the group has not fared well in the past years due to declining volume and changes in the market.
The proceeds from the proposed disposal will be utilised to defray the cost of staff termination and plant closures estimated at RM11 million and the remaining, as working capital, to wind-down operations of subsidiaries. – BERNAMA