<article>Japan-based <a style="color: #333399;" href="http://xyec.co.jp/" target="_blank">Xyec Holdings</a> has announced the merger of its subsidiaries <a style="color: #333399;" href="http://xyec.co.jp/group-companies/neutral" target="_blank">Neutral Co</a> and <a style="color: #333399;" href="http://xyec.co.jp/group-companies/aclox" target="_blank">Aclox Co</a> with effect from April 1, 2016.</article>

Japan-based <a style="color: #333399;" href="http://xyec.co.jp/" target="_blank">Xyec Holdings</a> has announced the merger of its subsidiaries <a style="color: #333399;" href="http://xyec.co.jp/group-companies/neutral" target="_blank">Neutral Co</a> and <a style="color: #333399;" href="http://xyec.co.jp/group-companies/aclox" target="_blank">Aclox Co</a> with effect from April 1, 2016.
Xyec board of directors passed the merger resolution citing both units offer similar activities of providing experienced engineers to customers in major manufacturing industries, primarily IT services.
&#8220;The company believes that the merger would lead to more effective use of facilities and resources as well as better execution of operations currently performed, by leveraging on economies of scale enjoyed by a single larger entity,&#8221; Xyec disclosed to the Singapore Stock Exchange.
In the merger, Aclox will be dissolved, and Neutral will assume the rights and obligations of Aclox.
&#8220;The merger will be an &#8216;absorption-type merger&#8217; provided for in the Japan Companies Act. It is a form of corporate re-organisation where one or more companies involved are dissolved without a liquidation process, and a surviving company assumes the rights and obligations of the dissolved company,&#8221; Xyec explained.
It added the completion of the merger is also subject to the approval of the board of directors of both subsidiaries and no objection during the public notice period. Under Japanese law, the company is required to serve one month’s public notice in Japan on the Merger pursuant to approval from the board of directors and shareholder of Neutral and ACLOX.
&#8220;Following the merger, the issue and paid-up share capital will remain unchanged. The merger is not expected to have any material impact on the consolidated earnings per share and/or net tangible assets of the company for the current financial year ending 31 March 2016,&#8221; Xyec added.
Xyec&#8217;s trading price closed at 22.5 cents on Thursday, December 24.
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Japan's Xyec to merge its subsidiaries Neutral, Aclox

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Japan's Xyec to merge its subsidiaries Neutral, Aclox

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