KUALA LUMPUR: Pelikan International Corp Bhd (PICB) is seeking to buy the minority shareholders’ stake in subsidiary Pelikan AG, which will lead to the de-listing of the international stationery maker from the Frankfurt Stock Exchange.
This would make it easier in terms of the management and direction of the Berlin-registered Pelikan AG going forward, PICB said in a filing with Bursa Malaysia on Thursday.
On Tuesday, PICB issued a notice to its 98.6%-owned subsidiary Pelikan AG of its intention to buy the minority shareholders’ shares.
Under the German Stock Corporation Act, a shareholder holding 95% of the share capital (principal shareholder) may request the transfer of the other shareholders’ shares to it against the payment of adequate cash compensation, and the resolution must be put forward at an EGM.
PICB expects the EGM to be held in July or August. It said the cash compensation amount would be determined within three months, after the valuation of Pelikan AG was completed.
“The proposed squeeze-out will result in the PICB group owning 100% of Pelikan AG. This will facilitate the ease of management and direction of Pelikan AG as a wholly-owned subsidiary of the PICB group going forward,” the company said.
“Further, the small free float percentage of the public shares of 1.38% does not commensurate for Pelikan AG to be maintained as a listed company under the Frankfurt Stock Exchange. The completion of the proposed squeeze-out will result in an automatic delisting of Pelikan AG from the Frankfurt Stock Exchange and hence reduce the cost of the PICB group to maintain Pelikan AG’s listing status.”
PICB said the proposed squeeze-out was not expected to have a material financial impact on earnings and assets of the Pelikan group.
PICB and its subsidiary companies collectively holds 238.91 million bearer shares with a nominal value of 1 euro per share in Pelikan AG, representing 98.62% of the issued and paid-up capital of Pelikan AG.