Japanese telecoms group eAccess has announced the completion of the absorption-type merger of its wholly owned cellular subsidiary eMobile. The merger falls under a ‘simplified merger’ clause set forth in Article 796, Paragraph 3 of the Companies Act for eAccess, and a ‘short form merger’ clause set forth in Article 784, Paragraph 1 of the Companies Act for eMobile. The eMobile brand name will be retained.
According to TeleGeography’s GlobalComms Database, on 1 July 2010 eAccess completed a share exchange transaction whereby it became the sole parent company and eMobile became a wholly-owned subsidiary, in accordance with the parent company’s fixed mobile convergence corporate strategy and to accelerate development of its mobile business. eAccess believes that ‘an absorption-type merger will boost business efficiency and promote rapid decision making, through further integration of the both companies’ telecommunication networks and distribution channels, exploitation of resources of the both parties, efficient capital investment, elimination of duplicated services and back-office integration, so that we can achieve rapid and strategically integrated management of businesses in all aspects.’ In relation to the merger, eAccess is looking to refinance JPY165 billion (USD2 billion) of debt relating to its cellular arm, via a combination of new bonds and loans.