SGA Solutions to Absorb Wholly-Owned Subsidiary SGA Systems via Small-Scale, No-Stock Merger
SGA Solutions (KOSDAQ-listed) will absorb its wholly-owned subsidiary SGA Systems (unlisted) via a small-scale merger without issuing new shares (non-capital increase merger).
The merger date is June 29, 2026, with registration and closing report scheduled for June 30, 2026.
Purpose: Improve operational efficiency by reducing unnecessary costs and optimizing human and physical resources to strengthen business competitiveness.
The disappearing company, SGA Systems, had negative equity of -523 million KRW (capital impairment) and a net loss of 117.9 million KRW as of end-2025, indicating poor financial health.
Shareholders of the surviving company are not granted appraisal rights; the merger will be approved by board resolution (scheduled for May 26, 2026) without a shareholder meeting.
If shareholders holding 20% or more of SGA Solutions' total issued shares object in writing within two weeks from May 8, 2026, the small-scale merger procedure cannot proceed.
KOSDAQ Filing Information
Filing: [Correction of Description] Report On Major Matters (Decision On Company Merger)