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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Finance

Finance

Rakuten Group to sell 15% of shares in Rakuten Bank in offshore market

The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan
The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan, May 15, 2019. REUTER... The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan, May 15, 2019. REUTERS/Sam Nussey
The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan
The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan, May 15, 2019. REUTER... The logo of Rakuten is pictured at the headquarters of Rakuten in Tokyo, Japan, May 15, 2019. REUTERS/Sam Nussey

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On Wednesday, the Rakuten Group (4755.T), based in Japan, said it intends to sell 25.5 million shares of Rakuten Bank (5838.T) on the offshore market. This is the most recent attempt to strengthen the company’s financial position.

As per the statistics provided by LSEG, the shares are comparable to a little less than fifteen percent of the company’s interest in the bank.

Rakuten stated that it intended to utilize the sales revenues to make early bond repayments, as the company had already pledged to reduce the amount of debt that included interest payments.

Based on the closing price on Wednesday, the stake would be worth around 69.8 billion yen, equivalent to $474.70 million.

According to corporate filings, the e-commerce and financial services division has bond redemptions due by the end of 2025, totaling roughly 800 billion yen, equivalent to $5.44 billion. Cash-burning generates these bond redemptions built out of its mobile network, which has been going on since 2020.

In April of this year, Rakuten Bank became publicly traded, resulting in the acquisition of 72 billion yen and a reduction of its holdings to 63.3%. Following this offering, Rakuten Bank will continue to operate as a consolidated subsidiary.

According to a second statement released by Rakuten Bank, the share price will be established following a book-building period that will take place between December 6 and December 7.


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