Toss to absorb payments subsidiary in merger aimed at boosting core business

Viva Republica, the operator of fintech platform Toss, will absorb its subsidiary Toss Payments in a merger.

The company disclosed Tuesday that it will merge Toss Payments through a small-scale merger.

Viva Republica will be the surviving entity, while Toss Payments will be dissolved upon completion. The merger is scheduled to take effect Nov. 30.

Because Viva Republica already holds a 100 percent stake in Toss Payments, the merger ratio has been set at 1-to-0. As a result, no new shares will be issued and no merger consideration will be paid.

Existing shareholders' ownership stakes and the company's governance structure will remain unchanged.

Viva Republica said it expects the merger to improve management efficiency and strengthen the competitiveness of its core business through a more integrated organization.

The company also said the impact on its consolidated financial position and operations is expected to be limited, given that Toss Payments is a wholly owned subsidiary.

Viva Republica said it has no plans to change or discontinue the businesses currently operated by either company, adding that no decisions have been made regarding any organizational restructuring planned after the merger is complete.