LY Corporation to absorb LINE Pay for streamlined operations

LY Corporation, trading on the Tokyo Stock Exchange, announced its decision to absorb LINE Pay Corporation, a wholly-owned subsidiary, through an absorption-type merger. The merger is slated to become effective on March 31, 2026. This strategic move aims to streamline group management and consolidate financial operations, following the termination of LINE Pay's mobile money transfer and payment services in Japan on April 30, 2025.

As LINE Pay Corporation is a wholly-owned subsidiary, no new shares or money will be allotted in connection with the merger. The transaction qualifies as a simplified merger for LY Corporation and a short-form merger for LINE Pay Corporation, obviating the need for shareholder approval from either company. Post-merger, LY Corporation's trade name, location, representative information, business scope, capital, and fiscal year-end will remain unchanged.

The company anticipates a reduction in its tax burden for the current fiscal year due to the merger, though the overall impact on consolidated financial results is expected to be immaterial. LY Corporation projects consolidated revenue of JPY 2,100,000 million and adjusted EBITDA between JPY 500,000 million and JPY 510,000 million for the fiscal year ending March 31, 2026.