Merger of Subsidiaries

SoftBank Corp. (the “Company”) announces that on January 23, 2015 its Board of Directors has resolved to consummate a merger among its subsidiaries SoftBank Mobile Corp. (“SoftBank Mobile”), SoftBank BB Corp. (“SoftBank BB”), SoftBank Telecom Corp. (“SoftBank Telecom”) and Ymobile Corporation (“Ymobile”) (the “Merger”), effective as of April 1, 2015 (tentative).

1. Purpose of the Merger

The four companies subject to the Merger are engaged in domestic telecommunications businesses within the SoftBank Group: SoftBank Mobile provides mobile communications services under the “SoftBank” brand, SoftBank BB provides broadband services under the “Yahoo! BB” brand, SoftBank Telecom provides telecommunications services such as fixed-line telephone and data communications services, and Ymobile provides mobile communications services under the “Y!mobile” brand, respectively. The four companies subject to the Merger have been working on mutually utilizing each other's communications networks, distribution channels and other resources, and enhancing the collaboration for the services.

Through the Merger, the Company will seek to maximize its corporate value by further concentrating business resources owned by the four companies subject to the Merger, and enhance competitiveness of the domestic telecommunications businesses. The new company will, under a corporate philosophy of “Information Revolution — Happiness for everyone,“ seek to create innovative services and improve operational efficiency through structural reforms. It will also expand its business jointly with other SoftBank Group companies, in areas such as IoT (Internet of Things), robotics, and energy.

Brand names of existing services will be maintained and mobile communications services will be continuously provided under the two brands: “SoftBank” and “Y!mobile.”

2. Summary of the Merger

(1) Timeline

(2) Method of the Merger

The Merger will be an absorption-type merger where SoftBank Mobile will be the surviving company and SoftBank BB, SoftBank Telecom and Ymobile will be dissolved.

(3) Details of Allotment of Shares upon the Merger

• *1
  The Company is planning to request Ymobile to acquire all 342,777 shares of Ymobile Class A Shares (without voting rights) held by the Company and in exchange to acquire 342,777 shares of Ymobile Class B Shares (with voting rights) from Ymobile, on February 24, 2015. As a result of this, the outstanding shares of Ymobile will only be 344,426 shares of Class B Shares. SoftBank Mobile shares will be allotted and delivered to each of the shareholders of Ymobile as at the end of the day preceding the date of the Merger in the ratio of 0.7600 shares of SoftBank Mobile common stock to 1 Ymobile Class B Share.

(4) Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights of the Merged Companies

Not applicable.

(5) Rights and Obligations Assumed by Surviving Company

The surviving company will assume all rights and obligations of the merged companies including assets and liabilities, and contractual statuses (including joint and several guarantee agreements regarding borrowings and bonds of the Company) in accordance with the Merger agreement.

3. Outline of the Companies Subject to the Merger

• *
  The companies fall under the category of “specified subsidiary.”
• *2
  On April 1, 2014 SoftBank BB split its commerce & service business (incorporation-type of company split) and the newly-incorporated SoftBank Commerce & Service Corp. (“SoftBank C&S”) assumed the business, and at the same time, SoftBank BB granted all of its SoftBank C&S shares to the Company as a payment of dividends of surplus, as announced in the press release “Announcement on Strategic Reorganization of Commerce & Service Business” on February 18, 2014. The table shows the information regarding SoftBank BB as of April 1, 2014 (after the split effectuated). “(10) Financial position and operating results for fiscal year ended March 2014” provides the financial position of SoftBank BB as of April 1, 2014 (after the split effectuated) and the operating results of the broadband business out of the results of SoftBank BB for the fiscal year ended March 31, 2014 (before the split).
• *3
  Ymobile changed its trade name from eAccess Ltd. (“eAccess”) on July 1, 2014. Preceding this, eAccess merged with WILLCOM, Inc. (“WILLCOM”) on June 1, 2014. The table shows the information regarding Ymobile as of July 1, 2014 (except in respect of “(7) Shares outstanding,” “(8) Shareholder and its share of voting rights,” and “(10) Financial position and operating results for fiscal year ended March 2014”). As described under “2. Summary of the Merger (3) Details of Allotment of Shares upon the Merger,” the Company is planning to request Ymobile to acquire all 342,777 shares of Ymobile Class A Shares (without voting rights) held by the Company and in exchange to acquire 342,777 shares of Ymobile Class B Shares (with voting rights) from Ymobile, on February 24, 2015. Due to this, “(7) Shares outstanding” and “(8) Shareholder and its share of voting rights” describe the number of shares and share of voting rights of Ymobile after the acquisition of 342,777 shares of Ymobile Class B Shares by the Company on February 24, 2015. Also, “(10) Financial position and operating results for fiscal year ended March 2014” provides the respective results of eAccess and WILLCOM for the fiscal year ended March 2014.
• *4
  On February 1, 2007 SoftBank Telecom implemented an absorption-type merger with SoftBank Telecom Sales Corp. as the surviving company and (former) SoftBank Telecom Corp. as the merged company and SoftBank Telecom Sales Corp. changed its trade name to “SoftBank Telecom Corp.” The table shows the date of incorporation of Japan Telecom Co. Ltd., a predecessor of (former) SoftBank Telecom Corp which is the surviving company in its substance.
• *5
  BB Mobile Corp., a subsidiary of the Company, of which the Company holds 100% of the voting rights, is planning to request SoftBank Mobile to acquire all 1,335,771 shares of SoftBank Mobile Class 1 Preferred Shares (without voting rights) held by BB Mobile Corp. and in exchange to acquire 351,307 shares of SoftBank Mobile common stock from SoftBank Mobile, on February 25, 2015. Due to this, “(7) Shares outstanding” describes the number of shares of SoftBank Mobile after the acquisition of 351,307 shares of common stock by BB Mobile Corp. on February 25, 2015.
• *6
  Amounts less than one million yen are rounded down.

4. Status after the Merger (as of April 1, 2015, tentative)

5. Future Outlook

The impact of the Merger on the Company's consolidated financial results for the fiscal year ending March 2016 will be minor.

Reference

Before the Merger

After the Merger

• *
  The above shareholding ratio is based on the number of voting rights.