XGate to Absorb Daesin Balance No.10 SPAC Through Merger

[Asia Economy Reporter Junho Hwang] Daishin Balance No.10 SPAC announced on the 31st that the unlisted company Xgate has decided to merge by absorption with Daishin Balance No.10 Special Purpose Acquisition Company, a KOSDAQ-listed company.

As of the date of submission of the preliminary listing examination application, the largest shareholder of Xgate is 'Gabia,' holding 45.00% (including related parties, 95.96%). As of the end of June, the largest shareholder of Daishin Balance No.10 Special Purpose Acquisition Company is Newgen Investment Co., Ltd., holding 7.33%. Upon completion of the merger, the largest shareholder will remain Gabia, with a shareholding ratio including related parties of 76.18%.

The merger ratio of Xgate to Daishin Balance No.10 SPAC is 1 to 0.9930487 shares. The merged company, Xgate, was valued at 2,014 KRW per share (par value 100 KRW), and the absorbed company, Daishin Balance No.10 Special Purpose Acquisition Company, was valued at 2,000 KRW per share (par value 100 KRW). This merger will be completed by February 14 of next year.

Daishin Balance No.10 Special Purpose Acquisition Company is a company established solely for the purpose of merging with other companies and will be dissolved after merging with Xgate Co., Ltd.

Xgate Co., Ltd. was established in 2010 and is a manufacturer and seller of essential information security products such as VPN, FW, and UTM.