YIDOBIO Inc. (XKON:A336040) entered into a merger agreement to acquire TASCOM CO.,LTD from Lee Seong-dong and other shareholders for KRW 89.6 billion on June 23, 2021. YIDOBIO will issue KRW 21,000 per share for TASCOM shares as a part of consideration. The consideration represents an exchange ratio of 1:0.4304761 for both preferred and common stock.

As a part of the transaction, 1.54 million common shares and class shares of 0.043 will be acquire. Post-closing of the merger YIDOBIO will be the surviving company and TASCOM will be the merged entity. Upon completion of the merger, Leesong Margaret Minseon will become the largest shareholder of the YIDOBIO, and the expected stake of the largest shareholder is 31.53%. Upon completion of the merger, the expected combined stake of Lee Song Margaret Min-sun and Lee Seong-dong is 50.34%.

As per the correction announced on July 5, 2021, the merger ratio for the common stock of TASCOM CO.,LTD is 0.43 and the shares to be acquired are 1.54 million, whereas the for the preferred stock acquired shares are 0.04 million with merger ratio being 0.43. TASCOM reported total assets of KRW 3.7 billion, total equity of KRW 1.3 billion, total debt of KRW 2.5 billion, sales of KRW 0.58 billion and net loss of KRW 0.86 billion for the most recent business year. The YIDOBIO board resolution was provided on June 23, 2021.

The transaction is subject to shareholders approval from YIDOBIO and TASCOM for which meeting will be held on August 17, 2021. Each party shall, among the necessary government approvals in relation to the Merger. The transaction is expected to be completed by September 23, 2021.

As per the correction announced on July 5, 2021, the transaction is expected to complete on September 24, 2021. As per the correction announced on July 26, 2021, the transaction is expected to complete on October 5, 2021. As per the correction announced on August 3, 2021, the transaction is expected to complete on October 15, 2021.

Hanbit Accounting Firm acted as evaluation agency in the deal.