At a Board of Directors meeting held today, Rakuten, Inc. (hereinafter the ”Company”) resolved to merge its wholly-owned subsidiary Amrit .DC Co., Ltd., which operates an online pet supplies shopping website, into the Company effective April 1, 2020, as outlined below. Since this merger is an absorption-type merger of a wholly-owned subsidiary, the disclosure of certain items and details has been omitted.
1. Purpose of merger
The company decided on the merger to increase operational efficiencies and to improve the quality of its services.
2. Summary of merger
Merger resolution by the Board of Directors December 12, 2019
Merger contract date December 25, 2019
Expected merger date (effective date) April 1, 2020
(Note 1) According to simplified merger rules in Company Law article 796 clause 2, the Company is proceeding with the merger without receiving approval at the Annual General Shareholders Meeting.
(Note 2) According to short form merger rules in Company Law article 784 clause 1, Amrit .DC Co., Ltd. is proceeding with the merger without receiving approval at the Annual General Shareholders Meeting.
(2) Merger method
The Company shall be the surviving company under absorption-type merger, and Amrit .DC Co., Ltd. shall be dissolved.
(3) Merger ratio
Since this will be a merger of a wholly-owned subsidiary, there will be no issuance of new shares, no increase in shareholders’ equity, and no payment for the merger.
(4) Handling of subscription rights to shares and bonds with the dissolved company
Amrit .DC Co., Ltd. has not issued any subscription rights to shares and any bonds with stock acquisition right.