-=Line Corp (LN) to merge with SoftBank's Z Holdings Corp

• Z Holdings was formerly known as Yahoo Japan

Tokyo (Reuters) - SoftBank's Z Holdings Corp <4689.T> is in talks to merge with messaging app operator Line Corp, two sources said on Wednesday, the investment company's latest bet on a struggling tech firm.

A deal could see SoftBank Corp <9434.T>, which controls internet firm Z Holdings, and Line's parent Naver Corp <035420.KS> form a 50:50 venture that would control Z Holdings, which would in turn operate Line and Yahoo, the sources said.

The two parties were likely to reach a basic agreement by the end of the month, the sources said.

Naver was not immediately available for comment outside of business hours. SoftBank said nothing had been decided.

The talks were first reported by Kyodo news agency.

Line, which last year sold a majority stake in its mobile unit to SoftBank, has reported three consecutive quarters of operating losses as the company tries to jump start growth.

Z Holdings, formerly known as Yahoo Japan, made a move in September to take control of fashion e-tailer Zozo Inc in a $3.7 billion deal, as it bulks up against rivals like Amazon.com (AMZN).

Dealmaking by SoftBank Corp, controlled by tech conglomerate SoftBank Group Corp <9984.T>, comes despite weak performance of its technology bets of its parent, which recorded an $8.9 billion operating loss in the second quarter.

The group's first quarterly loss in 14 years followed a collapse in the value of its investment in office-sharing firm WeWork as investors have turned skeptical about the path to profitability at cash burning startups.

Fortress Investment Group (FIG) to be acquired by SoftBank Group for $3.3 billion

Fortress went public on the New York Stock Exchange in 2007, before the financial crisis. Fortress’s stock price is down 80% since it began trading. The stock dipped below $1, and the firm did not consistently return to profitability until 2012.

Under the terms of the deal, Fortress will become an independent subsidiary of SoftBank.

SoftBank will now oversee assets under management of $170 billion, making it one of the largest private investors in the world after the Blackstone Group (BX) , which manages about $330 billion.

SoftBank is known for its technology and telecom holdings with investments in Alibaba, Sprint Nextel Corp. and Yahoo! Japan Corp.

  

Fortress will operate within SoftBank as an independent business headquartered in New York. Fortress manages about $70 billion in assets and invests in real estate, credit and private equity.

“Fortress’s excellent track record speaks for itself, and we look forward to benefiting from its leadership, broad-based expertise and world-class investment platform,” Masayoshi Son, Chairman and CEO of SoftBank Group said in a statement.

In December, after a meeting with then president-elect Donald Trump, Son said SoftBank planned to invest $50 billion in the U.S. economy and add 50,000 jobs. It was not clear if the Fortress acquisition was part of those investment plans.

"This is an investment in America, but it would be premature at this stage to say what the exact job impact will be," SoftBank spokesman Matthew Nicholson said in an email.

In the Fortress deal, each Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on Monday. In addition, each Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed 9 cents a Share.

Pete Briger, Wes Edens and Randy Nardone have agreed to continue to lead Fortress and have committed to invest 50% of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, according to a press release. They have also agreed to vote shares representing 34.99% of the outstanding Fortress voting shares held by them in favor of the transaction.

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The SoftBank acquisition was completed in the last week of December, for $3.3 billion to SoftBank Group Corp.

ARM Holdings (ARMH) acquired by Softbank (SFTBY)

     

SoftBank unveiled an audacious $32 billion deal to acquire ARM Holdings, the British semiconductor designer. The deal — one of the biggest of the year — would give the Japanese company control of a firm whose chip designs can be found in most of the world’s mobile gadgets, from iPhones and drones to a growing array of smart devices and appliances for the home.

• The deal is the first major cross-border transaction in Britain since Brexit.
• Compared with this same time in 2015, for example, pound-denominated assets are 30 percent cheaper for buyers holding yen.
• The deal is the third-largest proposed corporate merger this year, behind Bayer’s offer for Monsanto and a Chinese state-owned company’s proposal for Syngenta, according to the deal-tracking firm Dealogic. If completed, it would also be the second-largest chip deal on record, after Broadcom’s $37 billion deal for Avago Technologies.
• SoftBank already has ties to ARM through Sprint, the American wireless carrier that it controls.  
• The deal is expected to close in November.

ARM Holdings: Softbank (SFTBY) confirms merger offer to acquire ARMH for GBP24.3 bln ($31.4 bln):

The boards of directors of SoftBank Group (SFTBY) and ARM Holdings (ARMH) are pleased to announce that they have reached agreement on the terms of a recommended all cash acquisition of the entire issued and to be issued share capital of ARM by SoftBank (or, at SoftBank's election, a wholly-owned subsidiary of SoftBank).

Under the terms of the Acquisition

• Each ARM Shareholder will be entitled to receive: for each ARM Share: 1,700 pence in cash
• The price of 1,700 pence per ARM Share represents a premium of:
  • ~43.0% to the closing price of 1,189 pence per ARM Share
  • ~42.9 % to the closing price per ARM ADR of $47.08, on 15 July 2016 (being the last Business Day prior to this Announcement);
• The consideration values the entire existing issued and to be issued share capital of ARM at ~24.3 bln (or $31.4 bln).
• The Acquisition is not subject to any anti-trust or regulatory conditions

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