How to Perform a Merge Operation ?

The Dilitrust Entities Module allows you to perform and record entity or branch mergers, including detailed handling of share conversion through correction factors.

The platform provides a stepper interface to guide users through the merge.

Go to:

Transactions > Merger Transactions

to view access the functionality.

All Merger operation consist of 2 main steps:

Step 1: Select Entities

Choose the source entities to merge and specify the type of operation (A+B=A or A+B=C).

Step 2: Share Conversion

Define how shares from the merging entity/entities will be converted:

• For each share type from Entity B (or both A and B if creating C), specify a conversion factor.

• The conversion factor determines how many new shares are issued per old share.

• All converted shares are issued under the resulting entity (A or C)

A + B = A

In this configuration, the result of the Merge operations are the following:

• Entity B is merged into Entity A.

• Entity A survives, retaining its identity and absorbing B's data.

The conversion of share designation follows the following rule:

1 Company-A Share= conversion Factor * B-share

A + B = C

In this case, a new Company will be issued after the transaction

• Entities A and B are merged into a new entity C.

• You’ll be asked to define the name and currency of the new entity.

The conversion of share designation follows the following rule:

1 Company-C Share= conversion Factor-A * A-share + conversion Factor-B * B-share