Potential acquisition of the business of Pelikan Hardcopy
The Board of Directors of Pelikan International Corporation Berhad (formerly known as Diperdana Holdings Berhad) ("Pelikan International" or "the Company") wishes to announce the Company's potential acquisition of the business of Pelikan Hardcopy.
Pelikan Hardcopy Holding AG, incorporated in Switzerland, the holding company of Pelikan Hardcopy group is the largest independent non OEM ("Original Equipment Manufacturer") manufacturer and distributor of imaging supplies and printer accessories in Europe with a recognized brand name. These products include inkjet, toner, thermal transfer, office media and impact cartridges etc. Pelikan Hardcopy operates primarily in Europe and partly in Asia. The operational headquarter of Pelikan Hardcopy is in Switzerland and the main subsidiaries and branches are located in Switzerland, Germany, Scotland, Czech Republic and China.
The hardcopy business was split from Pelikan Holding AG (a subsidiary of Pelikan International) through a restructuring exercise more than 10 years ago. Since then, Pelikan Hardcopy has been holding a license for the use PELIKAN brand name from Pelikan Holding AG Group. This license has been given for a period of 50 years allowing Pelikan Hardcopy to distribute and/or sell hardcopy and print media products exclusively under the PELIKAN brand name in all territories except in the United States of America, Canada and Mexico.
Pelikan Hardcopy's core competence is the development of ink, toner power, impact ribbons, thermal transfer ribbon products and the corresponding cartridges as replenishment kits for the different printer types. These products are currently manufactured in 4 different facilities located in Switzerland, Czech Republic, Scotland and China. Net revenue of the group for the financial year ended 30 September 2005 was approximately EUR116million (approximately RM522million). The combined revenue with Pelikan International Group will therefore be more than RM1billion per annum.
Pelikan International wishes to commence negotiating a written agreement with the relevant parties providing for the potential acquisition. The Company will make further announcement to Bursa Malaysia Securities Berhad ("Bursa Securities") pursuant to Bursa Securities' Corporate Disclosure Policy in respect of any new developments relating hereto.
The potential acquisition of Pelikan Hardcopy will result in the re-consolidation of the PELIKAN brand name more than 10 years after the disposal of hardcopy division by Pelikan Holding AG. Following the potential acquisition, the enlarge group will have sturdy footing as both businesses are international businesses that can be further built up with stronger financial backing based on the established PELIKAN brand name. The re-consolidation will create new development opportunities for mutual development. Besides market expansion through sharing of resources and mutual tapping of sales and distribution networks, the potential acquisition will also result in increased product ranges which are complimentary of each others. The potential acquisition of Pelikan Hardcopy by Pelikan International is expected to yield synergies and common costs savings that will increase efficiency and overall competitiveness in the long term. These factors are likely to enhance the enlarged group's overall profitability in the future.
Announcement Bursa Malaysia 03/02/2006