PNC Tech to Merge with Subsidiary MTC Korea... Accelerating Management Efficiency

KOSDAQ-listed company PNC Tech will absorb and merge with its 100%-owned subsidiary, MTC Korea.

PNC Tech announced on the 21st that it held a board of directors meeting and decided to absorb and merge with MTC Korea to improve management efficiency and strengthen business competitiveness. This merger will proceed as a small-scale merger without capital increase, where no new merger shares are issued.

Once the merger is completed, PNC Tech will remain as the surviving company and will succeed all rights and obligations of the dissolved company, MTC Korea. As PNC Tech currently owns the entire stake in MTC Korea, there will be no change in the largest shareholder or governance structure even after the merger is completed.

An official from PNC Tech explained that this merger aims to increase management efficiency and strengthen sales competitiveness by enhancing the efficiency of utilizing human and material resources. The official further stated that establishing an integrated strategy is expected to maximize synergy effects, positively impacting the company's finances and operations.

The merged entity, MTC Korea, is a company engaged in the manufacturing and wholesaling/retailing of insulation materials for electrical and electronic equipment. As of last year, it recorded sales of 278.31 million won and a net loss of 473.83 million won. Through this merger, PNC Tech plans to reduce unnecessary costs and unify its management system.

As this merger qualifies as a small-scale merger under the Commercial Act, the approval of the general meeting of shareholders will be replaced by a resolution of the board of directors. Accordingly, appraisal rights will not be granted to PNC Tech shareholders. However, the company will receive notices of opposition to the merger from May 11 to May 26, and if shareholders holding 20% or more of the total issued shares object, the small-scale merger process may be suspended.

The merger contract date for the two companies is the 23rd, and the merger date is scheduled for June 30. The merger completion report and registration are also planned to be finalized on June 30.