[E-Daily Reporter Park Sun-Yeop ] CAPE INDUSTRIES LTD.(064820)announced on the 15th that it has decided to merge with CAPE INDUSTRIES LTD., its wholly-owned subsidiary engaged in the financial investment business. Following the merger, CAPE INDUSTRIES LTD. will continue to exist, while CAPE INVESTMENT will be dissolved.
Since CAPE INDUSTRIES LTD. holds 100% of CAPE Investment’s shares, the merger ratio has been set at 1 to 0. The merger will proceed as a small-scale merger without a capital increase—meaning no new shares will be issued—and there will be no change in the largest shareholder.
Through this merger, CAPE INDUSTRIES LTD. plans to integrate human and material resources across its financial investment and manufacturing divisions and reduce management and operating costs. The company aims to enhance management efficiency by unifying its decision-making structure and strengthen the profit structure of its financial investment business.
The merger agreement date is the 16th, and the merger effective date is September 30. The merger registration is scheduled to take place on October 14. As this qualifies as a small-scale merger, CAPE INDUSTRIES LTD. shareholders will not be granted a right to demand the purchase of their shares.