Duzon Bizon Absorbs Major Shareholder 'Duzon Holdings' Through Merger

Douzone Bizon announced on the 23rd that its board of directors has resolved to absorb and merge with its largest shareholder, Douzone Holdings. Douzone Bizon will remain as the surviving company, and Douzone Holdings will be dissolved, with 834.0507896 shares of Douzone Bizon common stock allocated for each one share of Douzone Holdings common stock. The shareholders' meeting for merger approval is scheduled for December 20, and the merger date is February 29, 2024.

Douzone Bizon plans to issue new shares and deliver treasury shares it currently holds as merger consideration. Additionally, an equal number of treasury shares of Douzone Bizon common stock to the newly issued shares will be canceled to prevent changes in the shareholding ratio of existing Douzone Bizon shareholders due to the issuance of new merger shares. As a result, there will be no change in the number of shares or shareholding ratio of existing Douzone Bizon shareholders due to the merger.

This merger decision aims to secure corporate competitiveness and expand business synergy through improved governance structure. The intention is to enhance the overall group value by improving the inefficiency caused by overlapping governance structures that occurred from the top-tier holding company Douzone Holdings to the intermediate holding company Douzone Bizon.

Once the merger process is completed, it is expected that various costs such as fees (royalties) paid to Douzone Holdings will be reduced. This will improve Douzone Bizon's profit and loss structure, leading to enhanced profitability and cash flow. With a simplified governance structure, effects such as efficient resource allocation, management efficiency, and activation of investments that respond swiftly to external environments are anticipated.

A company official stated, “This merger aims to enhance corporate value through financial structure improvement by integrating dispersed resources and eliminating redundant organizations and investments, thereby securing sustainable growth momentum.” He added, “Based on this, we will strengthen key capabilities for future new businesses and further solidify the company’s value.”

This content was produced with the assistance of AI translation services.