TOKYO: SoftBank Group Corp plans to combine its Yahoo Japan Internet business with Line Corp in a deal that values the messaging service at US$11.5bil, aiming to create a domestic giant that can more effectively compete with global rivals like Google and Amazon.com Inc.
In the complex transaction, SoftBank and South Korea’s Naver Corp will first take Line private through a tender offer at an estimated 5,200 yen per share. Z Holdings Corp, a unit of SoftBank’s telecom arm formerly known as Yahoo Japan, and Line then aim to merge in October 2020. The final price for the tender offer is still under discussion and the memo of understanding is non-binding. The transactions require shareholder approval.
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