In a significant financial move, a joint venture between Japan’s SoftBank Corp and South Korea’s Naver Corporation has announced plans to sell back approximately 2% of its 64.42% stake in LY Corporation, the operator of the popular messaging app Line. This decision was revealed in a share buyback disclosure by LY Corp on Friday.
The venture, known as “A Holdings,” will see its voting rights in LY decrease from 64.42% to 62.50% following the completion of LY’s 150 billion yen ($1.01 billion) buyback program. The buyback aims to enhance the liquidity of LY’s shares, meeting the requirements set by the Tokyo Stock Exchange for companies listed on its Prime Market.
An LY spokesperson emphasized that the buyback is purely a strategic financial maneuver and is unrelated to the recent Line data leak issue. This clarification aims to reassure investors and stakeholders about the company’s commitment to maintaining transparency and trust.
Naver referred to LY’s official disclosure when asked for further comments, while SoftBank has yet to respond to inquiries regarding the transaction.
This move is seen as a step towards stabilizing LY Corp’s market presence and adhering to regulatory standards, ensuring that the company remains a robust player in the competitive tech market. As the buyback proceeds, market analysts will be closely watching its impact on LY’s share liquidity and overall market performance.