HDC I-Controls Co., Ltd. (KOSE:A039570) agreed to acquire Hdc I-Service Co., Ltd. for KRW 0.01 million on June 4, 2021. Hdc I-Service Co will be merged into HDC I-Controls Co and the name of the merged company will be HDC Labs Co., Ltd. The merger ratio for the transaction is 1 share of HDC I-Controls is to 0.6716833 share of Hdc I-Servicea and purchase price of KRW 8,703. The expected payment date of the stock purchase request following the exercise of the stock appraisal right is on November 29, 2021.

Upon completion of the transaction, the largest shareholder of the merged company will be changed from HDC Co., Ltd. and Mong-Kyu Chung to HDC, Mong-Kyu Chung, and M&Q Investment Partners. In December 31, 2020, Hdc I-Service Co., Ltd. reported a total assets of KRW 141 billion. The merger is subject to board and shareholder approvals of both companies.

The shareholders meeting shall be held on September 1, 2021 and the date for approval is on October 26, 2021. As of August 13, 2021, the transaction was approved by the Korea Stock Exchange on August 5, 2021. The deal is expected to close on December 1, 2021.