Information on the Target

On July 5, 2022, CNT Tech Corporation ("Party A") and Telesta Corporation ("Party B") convened their respective boards of directors to approve a merger agreement. Under this agreement, Party A will absorb Party B, thereby inheriting all rights and obligations, while Party B will proceed to dissolve following the merger.

This strategic decision is aimed at streamlining operations and enhancing market competitiveness. Stakeholders, including creditors and shareholders, are invited to raise any objections regarding the merger within one month from the publication date of this announcement.

Industry Overview in South Korea

The tech industry in South Korea stands as one of the most dynamic sectors, characterized by rapid innovation and substantial investment in research and development. As a global leader in technology, the country boasts a robust infrastructure that supports high-tech advancements, positioning firms to capitalize on emerging trends such as artificial intelligence, 5G technology, and the Internet of Things.

In recent years, South Korea has seen an influx of venture capital, fueling growth in both established firms and startups within the high-tech domain. This burgeoning ecosystem has fostered collaborations between academia and industry, resulting in breakthrough technologies and solutions that cater to local and international markets.

Despite the challenges posed by global supply chain disruptions and economic uncertainties, the long-term outlook for South Korea's tech industry remains positive as companies are increasingly focusing on digital transformation and sustainability initiatives.

Furthermore, South Korea's strategic location and trade agreements throughout Asia enhance its attractiveness for foreign investments, making it a key player in the regional and global tech landscape.

The Rationale Behind the Deal

The merger between CNT Tech and Telesta is strategically aligned with the objective of maximizing operational efficiencies and expanding market reach. By consolidating resources, both companies aim to leverage synergies that will significantly enhance their competitive position in the industry.

This merger is expected to lead to greater economies of scale and improved service offerings, ultimately benefiting customers and stakeholders alike.

Information About the Investor

CNT Tech Corporation is a prominent player in the technology sector, known for its innovative solutions and commitment to high-quality service delivery. With a solid track record of financial stability and a diverse portfolio, CNT Tech has positioned itself as a trusted partner for numerous enterprises across different industries.

Through this merger, CNT Tech aims to further bolster its presence in the market and explore new business opportunities that align with its long-term growth strategy. The company's management is optimistic about the potential positive impacts this merger will have on its operations and value creation.

View of Dealert

The merger between CNT Tech and Telesta appears to be a strategic move that could yield significant benefits for both entities. Integrating resources and expertise is likely to create a stronger, more competitive organization capable of navigating the rapidly evolving tech landscape.

Furthermore, the alignment of business goals and enhanced operational capabilities will enable the merged entity to respond more effectively to market demands and customer needs. The anticipated economies of scale could also lead to cost efficiencies that boost profitability in the long run.

While potential risks, including integration challenges and market fluctuations, exist, the overall industry outlook in South Korea is favorable, which provides a supportive backdrop for this merger. Therefore, this deal can be viewed as a positive investment opportunity that positions the combined entity for sustainable growth moving forward.

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