LINE Corporation (NYSE:LN) (TOKYO:3938) (Headquarters: Shinjuku-ku, Tokyo, Japan; Representative Director and CEO: Takeshi Idezawa; the “Company”) announces as follows that it will acquire all shares in FIVE Inc. (hereinafter “FIVE”), making it a subsidiary of the Company. As this transaction does not fall under the timely disclosure standards set forth by the Tokyo Stock Exchange, a portion of the disclosure items and details have been omitted.
1. Reasons for this Share Acquisition
Since the full-scale
introduction of its performance-based ads in June 2016, the Company has
shown steady growth in its business results. Meanwhile, FIVE, which is
engaged in the development and operation of a platform for distributing
video ads to smartphones, has used its advanced technology to achieve
rapid growth in the performance-based advertising and brand advertising
domains.
The Company has determined that making use of FIVE’s
quality video ad platform’s business base and its specialized video ad
technologies will contribute to speeding up the global growth and
expansion of the LINE Group’s ad distribution business, and thus will
acquire all of the shares in FIVE.
2. Overview of the Changing Subsidiary | |||||
| (1) | Company name | FIVE Inc. | |||
| (2) | Location | Ebisu-West 5F, 1-16-15 Ebisunishi, Shibuya-ku, Tokyo | |||
| (3) |
Name and title of | Keisuke Kanno, Representative Director | |||
| (4) | Business | Development and operation of platform for distributing videos to smartphones | |||
| (5) | Total capitalization | 163,960,000 yen | |||
| (6) | Established | October 24, 2014 | |||
| (7) |
Relationship between | There are no capital, personnel, or business relationships. | |||
3. Number of Acquired Shares and Shareholding Status Before and After Acquisition | |||||
| (1) |
Shares owned prior to |
0 shares (Percentage of voting rights ownership: 00.00%) | |||
| (2) | Shares to acquire | 1,448 shares | |||
| (3) |
Shares owned after |
1,448 shares (Percentage of voting rights ownership: 100.00%) | |||
4. Schedule | |||||
| (1) | Signing of agreement | December 4, 2017 | |||
| (2) |
Execution of share | Mid-December 2017 | |||
5. Future Forecast
The impact of this Share Acquisition on the
Company’s consolidated results is expected to be minimal.
The Company has issued a press release today titled “LINE Corporation Enters Capital and Business Alliance With FIVE Inc.” (https://linecorp.com/en/pr/news/en/2017/1963) which provides details of FIVE’s services and their synergy with the Company’s businesses, as well as future business developments.
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: http://www.businesswire.com/news/home/20171203005101/en/
Contacts:
Michiko Setsu, +81-3 4316 2104
Global PR
dl_gpr@linecorp.co
