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LINE Corporation Establishes New Subsidiary by Company Split (Simplified Incorporation-Type Company Split)LINE Corporation (NYSE:LN) (TOKYO:3938) (Headquarters: Shinjuku-ku, Tokyo, Japan; Representative Director and CEO: Takeshi Idezawa; the "Company") announced that the Company has decided at the board of directors meeting held today to establish a new wholly-owned subsidiary, LINE Digital Frontier Corporation (the "New Company"), by a simplified incorporation-type company split to succeed the Company's LINE Manga and LINE Comics businesses (the "Split"). Since this is a simplified incorporation-type company split solely involving the Company, certain information is omitted from this announcement. 1. Purpose of the Company Split The LINE Manga business operated by the LINE Group provides users in Japan and Taiwan with a smartphone-based digital comic service that allows them to purchase and read manga and novellas on their mobile devices. Further, the LINE Group has been publishing popular, LINE Manga-exclusive titles as comics and selling them at book stores across Japan since 2015. In order to further expand the LINE Manga and LINE Comics businesses in Japan and abroad, the Company has decided to convert these businesses into a wholly-owned subsidiary by means of a company split. Through these means, the Company aims to make these businesses more competitive and improve the corporate value of the entire LINE Group by clarifying the management responsibilities for the business as an independent company, as well as accelerating the decision-making process and creating a business that can operate flexibly. 2. Summary of the Company Split (1) Company Split Schedule Date of approval of the incorporation-type company split plan: May 25, 2018 Date of the company split (effective date): July 2, 2018 (scheduled)
(2) Method of the Company Split The method of the contemplated company split is a simplified incorporation-type company split, with the Company as the company to be split and the New Company as the newly established company. (3) Allotment of Shares Related to the Company Split The New Company will issue 7,000 shares of stock to the Company upon completion of the Split. (4) Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights of the Splitting Company There will be no changes to the treatment of stock acquisition rights issued by the Company upon completion of the Split. (5) Change in Capital Upon Company Split There will be no change in capital of the Company upon completion of the Split. (6) Rights and Obligations to be Succeeded to the New Company The New Company will succeed to certain rights and obligations for assets, liabilities, and contractual commitments (including any rights and works ancillary thereto) pertaining to the LINE Manga and LINE Comics businesses (excluding businesses regarding prepaid instruments used in its businesses). (7) Expectation of the Fulfillment of the Company's Obligations The Company and New Company expect that there will be no issues as to the certainty of fulfilling their respective obligations upon completion of the Split.
(11) Outline of Business Division to be Split (i) Business of Division to be Split Operation of businesses related to the LINE Manga digital comic service and LINE Comics. (ii) Operating Results of Business Division to be Split Revenue for the year ended December 2017: 1,777,878,942 yen
4. Status after the Company Split There will be no changes to the Company's name, location, name and title of representative, business, capital and fiscal year-end upon the completion of the Split. 5. Future Projections This Split will have no effect on the Company's consolidated earnings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180525005740/en/ |