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Rakuten Group (OTCPK:RKUNY) (OTCPK:RKUNF) is looking to offload a big stake in its bank unit to overseas investors in an bid to shore up its finances, according to a media report dated Wednesday.
The Japanese e-commerce and financial services company is planning to sell 25.5M shares of Rakuten Bank priced at between 2,400 and 2,500 yen each, Reuters reported, citing a source. The sale would raise some 69.8B yen (US$475M) as of Wednesday’s closing price.
Proceeds from the fundraise would go towards repaying bonds early as the company was committed to reducing interest-bearing debt, the article noted, adding Rakuten (OTCPK:RKUNY) has nearly 800B yen in bond redemptions due before the end of 2025.
The planned stake sale comes as the company, which is on track to post its fifth consecutive year of losses this year, seeks to pay down debt amid heavy debt and losses at its wireless carrier unit.