CENIT CO., LTD (KOSE:A037760) signed a merger agreement to acquire Daejeon Gao Cinema Co., Ltd. from Jae-Gwan Choi and Seung-Bae Park for KRW 7.8 billion in stock on June 10, 2013. CENIT CO., LTD will issue 112.25 shares for each share of Daejeon Gao Cinema and will issue total shares of 8.98 million shares. Jae-Gwan Choi and Seung-Bae Park each own 50% stake in Daejeon Gao Cinema. Daejeon Gao Cinema Co., Ltd will be merged with CENIT. During the year ended 2012, Daejeon Gao Cinema Co., Ltd had total assets of KRW 7.15 billion, total liabilities of KRW 7.16 billion, net liabilities of KRW 6.49 million, sales revenue of KRW 5.24 billion, gross profit of KRW 2.92 billion, operating income of KRW 1.08 billion, net profit before deducting income tax expense of KRW 746.49 million, net profit of KRW 596.8 million, and total comprehensive income of KRW 583.07 million.

Board of Directors of CENIT CO., LTD and Daejeon Gao Cinema passed a resolution for the merger on June 10, 2013. The shareholders meeting date of CENIT CO., LTD and Daejeon Gao Cinema for merger approval is July 26, 2013. As of July 4, 2013, the merger ratio was amended. CENIT will issue 108.09 shares for each share of Daejeon Gao Cinema and will issue total shares of 8.65 million shares. As on July 26, 2013, transaction was approved by shareholders of CENIT CO. The creditors can submit their objections from July 29, 2013 to August 29, 2013. The transaction is expected to close on September 1, 2013.

CENIT CO., LTD (KOSE:A037760) completed the acquisition of Daejeon Gao Cinema Co., Ltd. from Jae-Gwan Choi and Seung-Bae Park on September 1, 2013.