Taiwanese LED manufacturer LiteOn discussed the merger of multiple wholly owned subsidiaries during a board meeting conducted on December 16th. The merger will include LSE, LiteOn Clean Energy Technology Corp, Leotek, as well as the consolidation of three companies in Dongguan China. The company hopes to reduce operational management costs and increase operation benefit by simplifying organizational structure.
The LiteOn Group initiated a four-in-one merger between listed companies LiteOn Electronics, LiteOn Technology Corporation, Silitek Corporation, and GVC. At the beginning of 2013, the company announced the cash tender offer for all shares of market listed LiteOn IT. On the 16th of this month, the company announced the merger with LSE, LiteOn Clean Energy Technology Corp, and Leotek with provisional dates set at March 15th, April 15th, and April 7th of next year. The aforementioned companies will be closed down in the future.
LiteOn fully owns all market shares for LSE, LiteOn Clean Energy Technology Corp, and Leotek, the merger therefore will have little effect on shareholders equity and revenue performance. However, the merger is hoped to reduce operational management costs.
