PELIKAN INT'L NEEDS TO BORROW $ 55,000,000.00

[Anonymous]

http://www.bernama.com/bernama/v5/newsbusiness.php?id=448602
PELIKAN INT’L NEEDS TO BORROW $ 55,000,000.00
Pelikan International is eyeing a rights issue to raise RM188.7 million ($55.5 million) for working capital.
KUALA
LUMPUR, Oct 09 — Pelikan International Corp Bhd plans to undertake a
renounceable 1-for-2 rights issue to raise up to RM188.7 million for
working capital. It entails an issue of up to 171.584 million new shares at RM1.10 each.
Pelikan
president and chief executive officer, Loo Hooi Keat, said the group
has embarked on an aggressive expansion path in Europe and Asia in the
past years, which were funded mainly by internally funds and some
borrowings.”In this, we have tasted much success as demonstrated in our
revenue rising from around RM500 million in financial year 2005 to
RM1.3 billion in financial year 2008,” he said in a statement.Loo said
Pelikan would focus on growing the group’s business in the global
market in future.”We hope the rights issue will increase our share
capital base to commensurate with the increase in the volume of our
business, and more significantly, enhance our balance sheet,” he said.

If
fully subscribed, the issue would result in the company’s share capital
increasing from RM343 million to RM515 million.Loo said the group was
optimistic the exercise would fuel the growth achieved so far, and at
the same time prepare for future expansion.”Barring unforeseen
circumstances, the proposed rights issue is expected to be completed by
the first quarter of 2010,” he said.

[Author]

October 27, 2009 at 10:43 AM