More details have emerged since RT Media broke the news about Malaysian-listed stationery group Pelikan which has been acquired by China’s Print-Rite.
The deal, worth US$6.98 million (RM30 million) sees Print-Rite pick up the Pelikan’s foreign printer consumable businesses in Germany, France, Czech Republic and China.
The declining volume and changes in the market have seen Pelikan suffer losses of about US$5.59 million in Europe as well as in China.
However the three subsidiary stationery businesses, Pelikan Hardcopy Production AG (PHP), Pelikan Hardcopy Distribution GmbH & Co. KG (PHD) and Pelikan France S.a.s, contributed US$28.65 million or 9.3% of the group’s revenue in the 2016 fiscal year.
Arnald Ho spoke exclusively to RT Media saying, “As you know, Pelikan was originally sold to the Malaysian parent company, but now Print-Rite has bought their global supplies business together with the two companies in Germany and France as well as a 30 year license to use the Pelikan brand for the hard copies supplies.”
According to theedgemarkets.com proceeds from the transaction will be used to cover the cost of staff terminations and plant closures, estimated to be US$2.26 million. The remaining will be used for working capital to wind-down operations of the disposed businesses.