[March 20, 2018] |
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Update to Previously Disclosed Items: LINE MOBILE Corporation, a Consolidated Subsidiary of LINE Corporation, Execution of Memorandum of Understanding for Strategic Alliance by a Consolidated Subsidiary and Prospect of Change to Subsidiary
As previously announced in the January 31, 2018 release titled "Notice
of Execution of Memorandum of Understanding for Strategic Alliance by a
Consolidated Subsidiary and Prospect of Change to Subsidiary," LINE
MOBILE Corporation (hereinafter "LINE MOBILE"), a consolidated
subsidiary of LINE Corporation (hereinafter the "Company"), hereby
announces that today it has executed an agreement with SoftBank Corp.
(hereinafter "SoftBank") regarding a capital alliance wherein SoftBank
will underwrite a third-party allocation of new shares to increase LINE
MOBILE's capital, as well as a partnership for promoting the MVNO
business (hereinafter the "Alliance Agreement").
1. Overview of the Alliance Agreement
(1) Details concerning partnership
The two companies will work together to grow and expand the LINE MOBILE
telecommunications service by applying SoftBank's experience. as a
comprehensive telecommunications business operator to the service model
that LINE MOBILE has built since the launch of the MVNO (mobile virtual
network operator) service in September 2016.
(2) Details concerning capital alliance
SoftBank will underwrite LINE MOBILE's issuance shares using the third
party allocation method.
(i) Status of shares held by the Company before and after the
third-party allocation of shares to increase capital
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(1)
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Number of shares held before change
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342,000 shares (100%)
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(2)
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Number of shares held after change
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342,000 shares (49%)
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(ii) Schedule of third-party allocation of shares to increase capital
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(1)
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Date of agreement execution
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March 20, 2018
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(2)
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Date of capital increase
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April 2, 2018 (tentative)
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2. Future Projections
After the procedures for the third party allocation of new shares to
increase capital accompanying this capital alliance are completed, LINE
MOBILE is planned to change from a consolidated subsidiary to an
equity-method affiliate of the Company.
The effects on the Company's consolidated earnings for the 2018 fiscal
year (ending December 2018) are undetermined. An announcement will be
made once determined.
The Company has announced further details concerning the Memorandum of
Understanding for this Alliance in the press release titled "LINE MOBILE
and SoftBank Execute a Capital Alliance and Partnership to Further Grow
the LINE MOBILE MVNO Business" (https://linecorp.com/ja/pr/news/en/2018/2096)
released today.
This is an English translation of the original Japanese-language
document. Should there be any inconsistency between the translation and
the original Japanese text, the latter shall prevail.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180320006669/en/
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