Press Releases 2020

Notice Concerning Consideration
of Acquiring 100% Ownership and Absorption-type Merger
of LINE MOBILE Corporation by SoftBank Corp.

December 22, 2020
SoftBank Corp.

On December 22, 2020, SoftBank Corp. (hereinafter the “Company”) has decided and announced that it will consider making LINE MOBILE Corporation, a MVNO service provider, a wholly owned subsidiary and implement an absorption-type merger (the “Merger”). Details including purpose and schedules are as follows.

1. Purpose of the Merger

In March 2021, with the aim of further improving user convenience, the Company will launch a new brand dedicated to online, as well as a 4G/5G*1 service plan that provides a 20GB monthly data allowance at a monthly price of JPY 2,980. Under the brand concept of “SoftBank on LINE”, the new brand provides unlimited use of messaging app “LINE” without consumption of the monthly data allowance*2. It will also enable a variety of procedures to be performed on “LINE.”

This will be achieved through detailed discussions, conducted between LINE Corporation and the Company, regarding new telecommunications services utilizing the LINE platform. The Merger will be implemented as part of this process. The Merger will be realized due in part to the business integration between LINE Corporation and Z Holdings Corporation in March 2021.

In recent years, there has been an increase in the use of online services in people’s lifestyles. However, due to factors including the coronavirus disease 2019, there is an even greater need for non-face-to-face services that can be completed online, which reduce the burden as well as costs. The new brand will be launched to respond to these environmental changes, and this will enable the Company to respond to the diversifying needs of customers with its three main brands.

[Notes]
  1. *1
    Areas where 5G is available is limited, please confirm before signing up. To use 5G, a handset compatible with 5G is required.
  2. *2
    Data consumption related to usage of LINE talk, LINE call, etc. will not consume monthly data allowance. Certain services of LINE may not be subject to unlimited use, and also due to technical factors, some data consumption may not be subject to unlimited use. If you use paid content, a separate payment is required. We will announce details at a later date.

2. Overview of the companies involved in the Merger

  Absorbed company Surviving company
(1) Trade name LINE MOBILE Corporation SoftBank Corp.
(2) Address 4-1-6, Shinjuku, Shinjuku-ku, Tokyo 1-9-1, Higashi-Shimbashi, Minato-ku, Tokyo
(3) Name and title of representative Ayano Kado, Representative Director & President Ken Miyauchi, President & CEO
(4) Nature of business Provision of MVNO service LINE MOBILE Provision of mobile communications services, sale of mobile devices, provision of fixed-line telecommunications and ISP services
(5) Share capital JPY 12,910 million
(As of March 31, 2020)		 JPY 204,309 million
(As of March 31, 2020)
(6) Founded February 26, 2016 December 9, 1986
(7) Number of shares issued 1,108,679 shares 4,787,145,170 shares
(8) Fiscal year end March 31 March 31
(9) Number of employees
(As of March 31, 2020)		 (Standalone basis) 99 (Standalone basis) 17,299
(10) Major shareholders and shareholding ratios
(As of September 30, 2020)		 SoftBank Corp. 59.95%
LINE Corporation 40.05%		 SoftBank Group Japan Corporation 40.24%
JP MORGAN CHASE BANK 385632 3.59%
The Master Trust Bank of Japan, Ltd. (Trust Account) 2.80%
Custody Bank of Japan, Ltd. (Trust Account) 1.54%
JP MORGAN CHASE BANK 385781 0.95%
(11) Financial position and results of operations for the most recent fiscal year
Fiscal year end Fiscal year ended March 31, 2020
(Standalone: Japanese GAAP)		 Fiscal year ended March 31, 2020
(Consolidated: IFRS)
Equity attributable to owners of the Company*3 JPY 7,307 million JPY 1,000,546 million
Total assets JPY 15,113 million JPY 9,792,258 million
Equity per share attributable to owners of the Company*4 JPY 6,591.59 JPY 211.03
Revenue JPY 15,006 million JPY 4,861,247 million
Operating income (loss) JPY -6,686 million JPY 911,725 million
Profit (loss) before income taxes JPY -6,655 million JPY 811,195 million
Net income (loss) attributable to owners of the Company JPY -6,659 million JPY 473,135 million
Basic earnings per share JPY -6,013.12 JPY 99.27
[Notes]
  1. *3
    Indicates “Net assets” for LINE MOBILE Corporation.
  2. *4
    Indicates “Net assets per share” for LINE MOBILE Corporation.

3. Future plans

The Company and LINE Corporation have entered into a non-binding memorandum of understanding which provides for discussion of the Merger. The two companies will proceed with discussions and will immediately announce the details after the resolution of the Merger.

4. Forecasts

The effect of the Merger on the Company’s consolidated results of operations is immaterial.