Naver Line Absorbed by Spin-off Company 'Line Operations Company'

[Asia Economy Reporter Oh Ju-yeon] NAVER announced on the 30th that it has decided on an absorption-type demerger to transfer all business divisions of its subsidiary LINE Corporation to a newly established company (LINE Split Preparation Corporation).

The purpose of this demerger was explained as a structural change to achieve the business integration with Japan's Z Holdings Corporation. Since the demerged company will receive 100% of the shares of the newly established company, no separate demerger ratio was calculated.

The company stated, "As stipulated in the business integration agreement between the parties, as part of this business integration, an absorption-type demerger will be conducted to transfer all of LINE’s businesses to LINE Split Preparation Corporation, a wholly owned subsidiary newly established by LINE. Subsequently, a share exchange will be carried out with Z Holdings as the wholly owning parent company and LINE Split Preparation Corporation as the wholly owned subsidiary, with the consideration being shares of Z Holdings. This will transfer all businesses conducted by LINE under Z Holdings and initiate procedures to establish Z Holdings as an integrated holding company."

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