At the Board of Directors Meeting held on September 13, 2013, it was decided that PROTO CORPORATION (the Company) will dissolve and liquidate our subsidiary, PROTO SINGAPORE Pte. Ltd. (referred to as "PROTO SINGAPORE").
1. Background for Dissolution and Liquidation
The Company Group established PROTO SINGAPORE in the Republic of Singapore in May 2012 in order to promptly and strongly promote overseas business expansion such as M&A in Asia. Furthermore, in line with this effort, we also established PT. PROTO INDONESIA funded both by PROTO SINGAPORE and PROTO MALAYSIA Sdn. Bhd. in the Republic of Indonesia in December 2012. This way, we had been promoting global business expansion in the automobile-related information business in South East Asia. However, because PROTO SINGAPORE is not fully performing its expected function as the core subsidiary in Asia, we decided to dissolve it and focus the Company Group's management resources on PROTO MALAYSIA Sdn. Bhd. and PT. PROTO INDONESIA.
2. Overview of the Subsidiary to be Dissolved
Resolution at the Company's Board of Directors Meeting: September 13, 2013
As for the date of liquidation, the liquidation process will be completed when the legal procedures required by the local government complete.
4. Future Forecast
It is expected that the impact of this action on the consolidated performance will be minor.
As for the shares of PT. PROTO INDONESIA, of which PROTO SINGAPORE funded 75% and PROTO MALAYSIA Sdn. Bhd. funded 25%, the shares owned by PROTO SINGAPORE will be transferred to the Company prior to the dissolution of PROTO SINGAPORE.