Xyec Holdings units Neutral Co and ACLOX Co will be merged with effect from 1 April 2016 following a directors’ resolution passed at the board meeting on 25 December 2015.
The merger was proposed because both subsidiaries offer similar activities in the provision of experienced engineers to customers in major manufacturing industries, primarily IT Services.
Xyec believes that the merger would lead to the more effective use of facilities and resources as well as better execution of operation currently performed by leveraging economies of scale.
The merger will be an “absorption-type merger” provided for in the Japan Companies Act. It is a form of corporate re-organisation where one or more companies involved are dissolved without a liquidation process, and a surviving company assumes the rights and obligations of the dissolved company.
In the merger, ACLOX will be dissolved and Neutral will assume the rights and obligations of ACLOX.
Under Japanese law, the company is required to serve one month’s public notice in Japan on the Merger pursuant to approval from the board of directors and shareholder of Neutral and ACLOX.
Accordingly, the completion of the merger is also subject to the approval of the board of directors of both subsidiaries and no objection during the public notice period.
Following the merger, the issue and paid-up share capital will remain unchanged. The merger is not expected to have any material impact on the consolidated earnings per share and/or net tangible assets of the company for the current financial year ending 31 March 2016.
Shares in Xyec Holdings closed at 22.5 cents on December 24.
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The merger was proposed because both subsidiaries offer similar activities in the provision of experienced engineers to customers in major manufacturing industries, primarily IT Services.
Xyec believes that the merger would lead to the more effective use of facilities and resources as well as better execution of operation currently performed by leveraging economies of scale.
The merger will be an “absorption-type merger” provided for in the Japan Companies Act. It is a form of corporate re-organisation where one or more companies involved are dissolved without a liquidation process, and a surviving company assumes the rights and obligations of the dissolved company.
In the merger, ACLOX will be dissolved and Neutral will assume the rights and obligations of ACLOX.
Under Japanese law, the company is required to serve one month’s public notice in Japan on the Merger pursuant to approval from the board of directors and shareholder of Neutral and ACLOX.
Accordingly, the completion of the merger is also subject to the approval of the board of directors of both subsidiaries and no objection during the public notice period.
Following the merger, the issue and paid-up share capital will remain unchanged. The merger is not expected to have any material impact on the consolidated earnings per share and/or net tangible assets of the company for the current financial year ending 31 March 2016.
Shares in Xyec Holdings closed at 22.5 cents on December 24.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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