Rakuten to raise over ¥242B from share sale to Tencent unit, Walmart, Japan Post

Rakuten Inc. on March 12 announced plans to raise ¥242.35 billion through the issuance of new shares to companies including a Tencent Holdings Ltd. unit and Walmart Inc. and disposal of some treasury stock through a third-party allotment.

Under the offering, Rakuten will sell 131,004,000 shares to Japan Post Holdings Co. Ltd., 57,382,900 shares to Tencent unit Image Frame Investment (HK) Ltd and 14,536,000 shares to Walmart.

Mikitani Kosan Inc. and Spirit Inc., the asset management companies of Rakuten Chairman and CEO Hiroshi Mikitani's family, will be allotted with 4,366,800 shares each.

The amount to be raised from the share sale will be used for investment in and loan funds to the company's unit Rakuten Mobile Inc., which would develop specific base stations for the rollout of 4th and 5th generation mobile communication systems.

"In addition to the potential collaboration with the Japan Post Holdings Group on logistics, mobile and FinTech, the new potential for partnering with Tencent opens up a broad portfolio of opportunities, from digital entertainment, including online games, to e-commerce," Mikitani said.

As of March 12, US$1 was equivalent to ¥108.99.