Moda-InnoChips to be Absorbed by Rosen in a Merger of Affiliates Aimed at Enhancing Operational Efficiency, Limited Impact on Shareholder Value
Moda-InnoChips will be absorbed by its affiliate Rosen Co., Ltd. The merger ratio is set at 0.9755740 shares of Rosen common stock for each share of Moda-InnoChips common stock, based on market prices.
The merger aims to reduce unnecessary costs and improve operational efficiency through better management of human and physical resources. Both companies are affiliates of Daemyung Chemical, and the largest shareholder remains unchanged.
The merger requires a special resolution at the shareholders' meeting and clearance from the Fair Trade Commission. If the total appraisal rights exceed 100 billion KRW, the merger may be canceled. The merger date is scheduled for November 2, 2026.
[AI Summary]The absorption of Moda-InnoChips by Rosen is a consolidation within the existing affiliate structure with protective measures for minority shareholders including appraisal rights but dilution risk is limited as the ratio is market-based. However the dissolution of the target and the conditional cancellation clause pose investment risks.
KOSDAQ Filing Information
[Correction of Description] Report On Major Matters (Decision On Company Merger)