Taiwan's metal stamping parts maker AVY Precision Technology will merge with powder metallurgy specialist Jabon International via a share swap, in an effort to focus more on developing sales of auto parts for new energy vehicles and facilitate international acquisition deals, according to company sources.
Under the merger case, approved at their respective board of directors meetings held on January 28, one Jabon share will be swapped for 0.5291 AVY share.
Both companies will host extraordinary shareholders meetings on March 27 to pass the merger deal. After the share swap operations are completed and approved by regulators, AVY will remain listed on the Taipei Exchange and Jabon will be delisted.
The merger deal will allow the larger AVY to devote more resources to develop auto parts to support new energy vehicles rolled out by Japan automakers, while also enabling its future acquisitions of overseas enterprises, with Japan enterprises as priority targets.