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LEAD: Livedoor formally declares Nippon Broadcasting a subsidiary.

TOKYO, March 25 Kyodo


Livedoor Co. formally declared on Friday that Nippon Broadcasting System Inc. has become a subsidiary with its stake in the radio company standing at 50.21 percent in terms of voting rights based on the shareholders' list as of last Sept. 30.

It is still unclear whether Livedoor's voting rights will exceed 50 percent in the new shareholders' list that will be determined next Thursday, because some of the shareholders will hold non-voting shares, although Livedoor sources expressed confidence it will.

Friday was the deadline for registration as Nippon Broadcasting shareholders.

As of last September, the radio station's 32.8 million outstanding shares are estimated to include some 2.3 million non-voting shares. Non-voting shares emerge when an investor holds a smaller number of shares than the minimum number of a trading lot, or buys securities without registering ownership of the shares.

A number of Nippon Broadcasting shareholders are considered to own non-voting shares. Under Japanese law, broadcasters can refuse changing ownership of shares when its total foreign ownership reaches 20 percent, or otherwise face having their broadcaster license revoked.

Livedoor said it had secured a more than 50 percent stake in the radio firm on March 16. But it refrained from reporting it to the Finance Ministry, as some 1.13 million shares in the acquired stake were purchased on margin, in which Livedoor borrowed money from a brokerage to buy the securities.

Livedoor's formal announcement came upon completion of the payments for the shares purchased through margin trading.
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Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Mar 28, 2005
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