LY (TYO:4689) has agreed to absorb its wholly owned subsidiary, LINE Healthcare, via a simplified merger effective Sept. 1, 2026, following the June 2025 termination of their LINE Doctor telemedicine service.

As LINE Healthcare is fully owned, no shares or cash will be allotted to shareholders in the transaction, according to a Tokyo bourse filing on Wednesday.

The merger, approved by the board on June 29 and with the agreement planned for signing on July 1, will proceed without shareholder meetings due to simplified merger provisions.

LINE Healthcare reported negative net assets of 1.13 billion yen, and post-merger, LY's name, leadership, and business scope will remain unchanged.