DWI Corp. of Irvine said Wednesday that its proposal to merge its industrial design operations with the real estate sales business of San Francisco-based Otec Corp. would increase DWI's net worth by approximately $11.4 million.
DWI officials said the proposed deal calls for DWI to issue 17 million new shares of its stock and use them to buy Otec's real estate assets. Otec shareholders would receive five shares of DWI stock for every share of Otec stock they own.
Otec's principal asset is the Rio Del Oro subdivision in Belen, N.M., a property that includes about 26,000 undeveloped residential and commercial lots. DWI officials said they intend to continue to sell parcels of the subdivision following completion of the merger.