Rakuten Group Prices Rakuten Bank Shares for $412 Million Overseas Sale

The sale, representing nearly 15% of the online bank, is part of Rakuten's strategy to manage heavy debt and losses in its mobile network business.

Rakuten Group has priced shares of Rakuten Bank at 2,470 yen each in a $412 million overseas sale.
The sale represents nearly 15% of the online bank unit and is part of Rakuten's strategy to manage heavy debt and losses in its mobile network business.
Proceeds from the sale will be used to repay bonds early as Rakuten is committed to reducing interest-bearing debt, with almost 800 billion yen in bond redemptions due before the end of 2025.
Rakuten Bank was listed in April this year, reducing Rakuten Group's holding to 63.3%. With this latest offering, Rakuten's holding will drop below 50%.
Analysts predict that Rakuten may soon seek to list its credit card business, Rakuten Card, which includes the group's lucrative points and payments system.