Cancellation of Purchase of Shares of eAccess Ltd.
May 19, 2014
by a Subsidiary of SoftBank Corp., Yahoo Japan Corporation,
and their Future Cooperation
SoftBank Corp. (the “Company”) announced in its press release “Change of Indirect Subsidiary along with the Purchase of Shares of eAccess Ltd. by Yahoo Japan Corporation, a Subsidiary of SoftBank Corp.” issued on March 27, 2014 that Yahoo Japan Corporation (“Yahoo Japan”), a subsidiary of the Company would purchase the shares of eAccess Ltd. (“eAccess”) from the Company (the “Transaction”). However, as a result of in-depth discussions between the Company and Yahoo Japan following the announcement the Transaction has been cancelled as attached.
eAccess and WILLCOM, Inc. (a subsidiary of the Company) are still scheduled to merge with an effective date of June 1, 2014 (the “New Company”). Name of the New Company will be changed to Ymobile Corporation.
After the announcement of the Transaction on March 27, 2014, the Company and Yahoo Japan held further in-depth discussions on the mutual use of networks, service design, etc., coming to a deeper mutual understanding of the details of the Transaction. As a result, the Company and Yahoo Japan came to the conclusion that rather than Yahoo Japan converting the New Company to a consolidated subsidiary and building an infrastructure on its own, it would be better to develop the business by employing the strengths of each company, with Yahoo Japan responsible for services and the New Company for infrastructure. Consequently, the Transaction has been cancelled.
Working in close collaboration with Yahoo Japan, the New Company will take over the concept of “Delivering the Joy and Convenience of the Internet to Every Hand” put forth by Yahoo Japan at the time of the original announcement on March 27, 2014. In addition, the two companies will jointly offer a new service developed using Yahoo Japan's strength under the new brand name of Y!mobile. Yahoo Japan will announce the content of the new service as soon as it becomes fixed. Discussions will also begin with a view to having the various schemes implemented by Y!mobile expanded to SoftBank Mobile Corp.
Impact on the Financial Results
The impact of the cancellation of the Transaction on the consolidated results for the fiscal year ending March 31, 2015 will be minor. In the press release “Change of Indirect Subsidiary along with the Purchase of Shares of eAccess Ltd. by Yahoo Japan Corporation, a Subsidiary of SoftBank Corp.” issued on March 27, 2014, the Company stated that “the Company expects to record approximately JPY 55.7 billion in gain on sale of shares in an affiliate as special income on a stand-alone basis for the fiscal year ending March 31, 2015,” however this special income will not occur.
- *The Company's financial results on a stand-alone basis are prepared in accordance with Japanese GAAP.
Overview of the New Company as of June 2, 2014
|Name||eAccess Ltd. (will be changed to Ymobile Corporation)|
|Head office||1-9-2 Higashi-shimbashi, Minato-ku, Tokyo|
|Representative and Directors||Representative Director, President and CEO||Eric Gan|
|Director and COO||Hiroyuki Terao|
|Director||Ken Miyauchi (Representative Director, Senior Executive Vice President of SoftBank Corp.)|
|Director||Junichi Miyakawa (Executive Vice President, Board Director & CTO of SoftBank Mobile Corp.)|
|Director||Kazuhiko Fujihara (Executive Corporate Officer of SoftBank Corp.)|
|Director||Shin Murakami (Corporate Officer, Chief Mobile Officer of Yahoo Japan Corporation)|
|Main business||Telecommunications business|
|Paid-in capital||JPY 43,286 million|
|Establishment||November 1, 1999|
|Major shareholders and shareholding ratio||SoftBank Corp. 99.68% (33.29% of voting rights）|
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