Vissem Electronics Co., Ltd. entered into a contract to acquire remaining 8.96% stake in DONGYANG TELECOM Co.,Ltd for KRW 1.3 billion.
October 04, 2020
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Vissem Electronics Co., Ltd. (KOSDAQ:A072950) entered into a contract to acquire remaining 8.96% stake in DONGYANG TELECOM Co.,Ltd for KRW 1.3 billion on October 5, 2020. Merger ratio is 1: 0.1426445. Vissem Electronics Co., Ltd. will issue 0.14 shares for each share of DONGYANG TELECOM Co.,Ltd. and will issue 0.25 million shares as consideration. As of November 19, 2020, the merger ratio was modified to 1: 0.1305560 and Vissem Electronics Co., Ltd. will issue 0.13 shares for each share of DONGYANG TELECOM Co.,Ltd and will issue 0.23 million shares as consideration. Vissem Electronics Co., Ltd. will acquire 1.77 million shares of DONGYANG TELECOM Co.,Ltd. Prior to the transaction, Vissem Electronics Co., Ltd. held 17.97 million shares amounting to 91.04% stake in DONGYANG TELECOM Co.,Ltd. After the transaction, Vissem Electronics Co., Ltd. will be the surviving entity and Dongyang Telecom Co., Ltd. will be dissolved. The name of the surviving company after the merger will be Vissem Electronics Co., Ltd.
A meeting of shareholders will be held on November 27, 2020. As of November 19, 2020, meeting of shareholders will be held on December 18, 2020. The approval of Board for merger is expected on November 27, 2020. As of November 19, 2020, approval of Board for merger is expected on December 18, 2020. This is a small-scale merger thus general shareholders' meeting for approval of the merger and the general meeting of the merger termination report are all replaced with the approval of the board of directors. As on December 18, 2020, the transaction was approved by the board of directors of Vissem Electronics Co., Ltd. Creditors can submit their objections from November 27, 2020 to December 28, 2020. As of November 19, 2020, Creditors can submit their objections from December 18, 2020 to January 19, 2021. The Board of Directors passed a resolution for the transaction on October 5, 2020. The transaction is expected to be completed on December 8, 2020. As of November 2, 2020, the transaction is expected to close on December 29, 2020. As of November 19, 2020, the transaction is expected to be completed on January 20, 2021. As of January 29, 2021, the transaction is expected to close on March 1, 2021.
Vissem Electronics Co.,Ltd. is a Korea-based company engaged in the manufacturing of light emitting diode (LED) modules and light guide panels. The Company manufactures LED devices and modules, including LED lamps for LED display boards, LED surface mount device (SMD) chips for LED displays, indoor use LED dot matrix modules and others; LED screens, including outdoor LED screens, indoor display boards and others; optical communication components, including optical fibers, optical termination boxes and other accessories, as well as LED lighting equipment. It also involves in the provision of power supplies, cooling tanks and others for KTX electron industry. It also involves in the manufacture and sale of communication equipment, printed circuit boards (PCBs) and transformer parts through DONGYANG TELECOM CO., LTD.
VISSEM ELECTRONICS CO., LTD. 
