TOKYO--(BUSINESS WIRE)--
LINE Financial Corporation (hereinafter "LINE Financial"), a
consolidated subsidiary of LINE Corporation (hereinafter the "Company"),
announces today that it has made a resolution to issue new shares to the
Company through a third-party allocation of new shares, with such shares
to be underwritten by the Company.
Since the total capitalization
of LINE Finance will become equivalent to ten-hundredths or greater of
the Company's total capitalization once the third-party allocation of
new shares to increase capital is completed, LINE Financial will
therefore correspond to a specified subsidiary.
1. Reasons for Third-Party Allocation of New Shares to Increase Capital
by Subsidiary, and Underwriting of the Same
Following its mobile
money transfer and payment service "LINE Pay," the Company established
LINE Financial in January 2018 to further reinforce its position in the
financial business domain as well as to create and provide revolutionary
financial services. Going forward, LINE Financial will serve as the core
of the various LINE-based financial services – including virtual
currency trading and an exchange, loans, and insurance – that the
Company is currently preparing to provide. The Company will underwrite
LINE Financial's third-party allocation of new shares to increase
capital in order to further advance the preparations for these
businesses.
|
2. Overview of Third-Party Allocation of New Shares to Increase Capital Conducted by a Subsidiary |
||||||
| (1) | Amount to be paid | JPY 10,000,000,000 | ||||
| (2) | Payment date | April 2, 2018 (tentative) | ||||
| (3) |
Total capitalization |
JPY 10,000,000,000 | ||||
|
3. Overview of Subsidiary Intending to Conduct a Third-Party Allocation of New Shares to Increase Capital |
||||||
| (1) | Company name | LINE Financial Corporation | ||||
| (2) | Location | 4-1-6 Shinjuku, Shinjuku-ku, Tokyo | ||||
| (3) |
Name and title of |
Takeshi Idezawa, Representative Director | ||||
| (4) | Business | Business management for subsidiaries operating financial-related services, and other operations ancillary thereto | ||||
| (5) | Total capitalization | JPY 5,000,000,000 (before capital increase) | ||||
| (6) | Established | January 10, 2018 | ||||
| (7) |
Relationship |
Capital |
The Company holds 100% of the shares issued by LINE Financial. | |||
|
Personnel |
Two of the Company's directors serve jointly as directors at LINE Financial, and one executive serves jointly as an auditor at LINE Financial. | |||||
|
Business |
There are business relationships, such as providing services, between the Company and LINE Financial. | |||||
4. Future Projections
This transaction will have no effect on the
Company's consolidated earnings.
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/20180326005683/en/
