Smart card market vendor Gemplus International SA claims support from the overwhelming majority of its shareholders for its planned merger with Axalto NV after investors at its AGM in Luxembourg voted between 97.8% and 99.9% in favor of resolutions proposed by the board.
Crucially, one of the resolutions was for a special dividend worth 164m euros ($194.8m), which is an important part of the merger plan.
CEO Alex Mandl said it was another important step towards the creation of Gemalto, the proposed name of the merged company.
However, there was little doubt the combination would win support of shareholders. The problem is whether regulators will approve the creation of a company with almost half of the chip card market. All the two companies will say is that they are working closely with the competent authorities to obtain antitrust and other regulatory approvals for the transaction.
On January 31, over 99.9% of Axalto’s shareholders approved the merger at an extraordinary general meeting.