Shifting gears in a desperate attempt to rescue its sinking fortunes, Rakuten Group (OTCPK:RKUNY) (OTCPK:RKUNF) is considering selling a significant stake in its bank unit to foreign investors, a media report claimed on Wednesday.
The buzz is that the Japanese e-commerce and financial services company is eyeing the sale of 25.5M shares of Rakuten Bank at a price ranging between 2,400 and 2,500 yen each, as revealed by a source cited in a Reuters report. This deal could potentially fetch a whopping 69.8B yen (US$475M) based on Wednesday’s closing price.
Word on the street is that the proceeds from this maneuver would be used to retire bonds prematurely, as the company is hell-bent on slashing its interest-bearing debt. As if the stage wasn’t already dramatic enough, the article highlighted that Rakuten (OTCPK:RKUNY) has a daunting 800B yen in bond redemptions looming before the close of 2025.
With losses looming for the fifth year in a row, the company is now gearing up to shed some weight in the form of debt, countering the financial fallout at its wireless carrier unit.