SINGAPORE (Jan 17): Fu Yu Corporation has proposed to amalgamate with two of its wholly-owned subsidiaries, Nanotechnology Manufacturing (NTM) and Solidmicron Technologies (SMT), and continue as one company.

Both NTM and SMT are based in Singapore and are mainly involved in manufacturing activities.

In an SGX filing on Tuesday, Fu Yu says this is to streamline the corporate structure and operations of the Group to improve its financial performance through improved operational efficiencies, economies of scale and synergies from better allocation of resources.

The amalgamated company is expected to reduce audit, tax and other regulatory compliance costs, Fu Yu adds.

The proposed amalgamation is subject to approval by Fu Yu shareholders by way of a special resolution at an extraordinary general meeting to be convened.

Fu Yu closed at 19.5 cents on Monday.