KUALA LUMPUR: ECM Libra Financial Group Bhd, through its wholly-owned subsidiary ECM Libra Investments Ltd, has acquired 36.12 million ordinary RM1 shares representing 7% of pen maker Pelikan International Corp Bhd (PICB).
According to exchange filings, the shares were purchased yesterday from PICB’s holding company, PBS Office Supplies Holding Sdn Bhd (PBS), pursuant to a put and call agreement entered into with PBS.
The purchase of PICB, which also distributes art and hobby products, office supplies and printer consumables, came after a 9.8% stake share swap between PICB and its competitor China Stationery Ltd (CSL).
The purchase of the PICB shares would be satisfied via the issuance of up to 47.17 million new CSL shares at an issue price of RM1.06 per share.
PICB, which has undergone a restructuring exercise, announced in the media that a two-year dealership agreement with CSL would generate sales of US$10 million (RM30.59 million) to US$20 million from China over the next two years.
PICB declared a net loss for the third-quarter ended Sept 30, 2012, narrowing to RM9.1 million compared to the RM16.54 million loss a year ago.
Under the agreement, CSL will be appointed to distribute and sell on a non-exclusive basis, office and school stationery products marketed by Pelikan under the “Pelikan” trademark in China and Hong Kong.
PICB, which revenue is 80% from Europe, would add China as a growth area for it to develop and complement its businesses.