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Rakuten Plans Stake Sale in Rakuten Bank to Overseas Investors, Aiming to Raise $433 Million

Rakuten Group announces intentions to sell a substantial stake in Rakuten Bank to overseas investors, seeking to raise $433 million to address heavy debt and losses in its mobile network unit
Japan
r 4755.TSE r 5838.TSE Mid and Small Cap 2000 Tech 350
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In a strategic move to address its significant debt and losses in the mobile network unit, Rakuten Group plans to sell a large stake in Rakuten Bank to overseas investors. The planned sale comprises 25.5 million shares, equivalent to just under 15% of the online bank’s ownership. Priced between 2,400 and 2,500 yen each, the offering is expected to raise a maximum of 63.8 billion yen ($433 million), with proceeds designated for the early repayment of bonds, aligning with Rakuten’s commitment to reducing interest-bearing debt.

Rakuten has faced challenges with almost 800 billion yen ($5.4 billion) in bond redemptions due before the end of 2025, primarily attributed to escalating costs associated with expanding its mobile network. The mobile unit’s difficulties have contributed to Rakuten logging 13 consecutive quarters of operating losses. The share sale follows Rakuten’s previous financial strategies, including issuing new shares, selling down its holding in Rakuten Securities, and listing Rakuten Bank earlier this year. Analysts speculate that Rakuten may soon consider listing its credit card business, Rakuten Card, which includes the group’s valuable points and payments system. The share price will be determined after a book building period between December 6 and 7.

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