Change in Specified Subsidiary
SoftBank Group Corp. (“SBG”) announces that its subsidiary, LY Corporation (“LY”) has decided today to increase the capital of LINE Bank Taiwan Limited (“LBT”), an equity method associate of LY, through its subsidiaries LINE Financial Corporation (“LFC”) and LINE Financial Taiwan Limited (“LFT”). As a result, LBT is expected to become a subsidiary and specified subsidiary of SBG. Details are as follows.
1. Reason for the change
LY will make an additional investment (capital increase) in LBT, a company of the LY Corporation Group (“LY Group”) through its subsidiaries, LFC and LFT. This is aimed at promoting the services of “LINE Bank,” a banking service operated by LBT in Taiwan, and further strengthening LBT’s collaboration within the LY Group. Consequently, LBT is expected to become a specified subsidiary of SBG as the amount of LBT’s capital will be equivalent to at least 10% of SBG’s capital.
2. Overview of LBT
| (1) Company name | LINE Bank Taiwan Limited | ||
|---|---|---|---|
| (2) Location | 3F and 4F, No. 333, Ruiguang Road, Taipei City, Taiwan (R.O.C) | ||
| (3) Name and title of representative | Chairman: In Joon Hwang CEO: Morris Huang | ||
| (4) Description of business | Internet-only bank | ||
| (5) Common stock | TWD15.0 billion | ||
| (6) Established | March 9, 2020 | ||
| (7) Major shareholders and shareholding ratios | LINE Financial Taiwan Limited 49.90% Fubon Bank 27.18% | ||
| (8) Relationship between SBG and LBT | Capital relationship | LFT, a subsidiary of LY, holds 49.90% of the outstanding shares of LBT. | |
| Personnel relationship | Not applicable | ||
| Business relationship | Not applicable | ||
|
(9) Consolidated operating results and consolidated financial positions of LBT for the
last three years | |||
| Fiscal year ended | December 2022*1 | December 2023*2 | December 2024*3 |
| Total equity (JPY million) | 57,789 | 56,404 | 54,562 |
| Total assets (JPY million) | 240,284 | 335,490 | 392,580 |
| Total equity per share (JPY) | 38.53 | 37.60 | 36.37 |
| Ordinary income (JPY million)*4 | 276 | 5,795 | 10,481 |
| Loss from continuing operations before income tax (JPY million) | (10,864) | (6,807) | (5,382) |
| Total comprehensive loss (net of tax) (JPY million) | (8,999) | (5,255) | (4,283) |
| Profit (loss) per share (JPY) | (7.71) | (3.65) | (2.84) |
| Dividend per share (JPY) | - | - | - |
(*1) Calculated at the exchange rate of TWD1 = JPY4.33 (exchange rate as of the end of December 2022).
(*2) Calculated at the exchange rate of TWD1 = JPY4.62 (exchange rate as of the end of December 2023).
(*3) Calculated at the exchange rate of TWD1 = JPY4.82 (exchange rate as of the end of December 2024).
(*4) Ordinary income is calculated as the sum of lìxí shōurù (equivalent to income from interest) and shǒuxù fèi jìng shōuyì (equivalent to income from fees).
3. Details of the capital increase (planned)
| (1) Investment amount | TWD2.745 billion |
|---|---|
| (2) Number of shares to be acquired through the capital increase | 274,500,000 shares |
| (3) Number of shares and ratio of voting rights held before the capital increase | 748,500,000 shares (Ratio of voting rights: 49.90%) |
| (4) Number of shares and ratio of voting rights held after the capital increase | 1,023,000,000 shares (Ratio of voting rights: 51.15%) |
4. Schedule for change
| (1) Date of decision by LY | April 10, 2025 |
|---|---|
| (2) Investment date | During June 2025 (planned) *5 |
(*5) The investment date may change depending on approvals and other requirements from the relevant Taiwanese authorities regarding this capital increase.
5. Future outlook
The impact of this matter on SBG’s consolidated financial results for the fiscal year ending March 31, 2026 is expected to be minor. If any matters arise that need to be disclosed, they will be promptly communicated.
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