Citing the deal as “fair and reasonable”, Kenanga IB has put forth its recommendation that PICB shareholders vote in favour of the proposed deal.

Kenanga IB is the appointed independent adviser for the potential transaction.

Holdham is a France-based manufacturer and distributor of school and office supplies.

PICB shareholders will vote on the proposed transaction at the company’s extraordinary general meeting (EGM), scheduled on Sept 29.

The EGM will also decide on PICB’s plan to distribute part of the disposal consideration to its shareholders through capital reduction, which will involve the cancellation of RM452.4 million of issued capital.

The proceeds are to be used for shareholder repayment.

“After completion of the proposed disposal, shareholders of PICB are expected to partially realise their investment in PICB via the proposed distribution, including receiving an indicative amount of 85 sen per share,” Kenanga IB said.

“We are of the opinion that the rationale for the proposed disposal is reasonable,” it added.

Kenanga IB said this is because PICB has not declared and paid any dividend from its operating profits due to continuous high working capital requirements, rising operational costs, as well as new product development and reinvestments.

The last time PICB paid special cash dividends was in December 2021 at 20 sen per share, according to Bloomberg data.

Kenanga IB concluded that the proposed disposal will open up a chance for PICB to realise the value of its investment at a fair valuation, giving shareholders an opportunity to yield cash for their investments in PICB.

PICB shares have risen over 128% since the beginning of this year.

At market close today, PICB’s share price was up by 3 sen or 3.51% at 88 sen, giving the group a market capitalisation of RM535.07 million.