Malaysian market analyst claims company is “aiming to dispose of or downsize its printer consumable business in the near term”.
Pelikan Hardcopy’s base in Wetzkion (Credit: David Kunding, AVU)
The Star reported on Kenanga Research’s Analyst Soong Wei Siang’s perspectives on Pelikan International’s earnings growth, with Soong stating his belief that “the group is […] aiming to dispose of or downsize its printer consumable business in the near term”, with plants in “Switzerland, China and Scotland being lined up for disposal or closure”.
The Recycler reported earlier this week on the company’s plans to possibly close its toner factory in Monchaltorf, Switzerland, with “negative currency developments and changing market conditions” possibly forcing it to close the site, as well as the “loss-making development of toner powder” and the “overcapacity” of the toner production market.
Soong’s perspective on the company comes as part of speculation on its earnings growth, which is set to be “underpinned” by Pelikan’s restructuring, and which The Recycler reported on earlier this year. Pelikan’s board accepted the company’s proposal to integrate its subsidiaries into Herlitz AG, which The Star notes “will hold key European and Latin American sales units”.
The analyst’s report suggested Pelikan proposed to “inject its core stationery sales and distribution assets” into Herlitz, raising RM462 million ($142.4 million/€111.6 million) through “offer for sale and private placement of new shares” by Herlitz, thereby “unlock[ing] the value of Pelikan’s assets while strengthening its balance sheet”.