bullish

Rakuten

If Rakuten (4755) Combines Financial Units... Who Wins and How? Well... It's Complicated

850 Views01 Apr 2024 23:11
Rakuten proposes to combine its "fintech" businesses, injecting Securities/Card/Insurance into a listco to succeed Bank. Backdoor listing for Sec/Card, higher ROE for Bank. But there will be overhang.
Boomeranged on Thu, 23 May 2024 23:02
Seven weeks ago, Rakuten announced an effort to restructure itself. Rakuten Bank (RB) would become a holdco for Rakuten Securities, Card, and Insurance. It seemed to garner minimal investor interest. But it could a) double RB equity, b) increase net income at RB by 140%, c) provide Rakuten parent with a huge cash AND equity influx, a capital measure hinted in Q1 earnings a week ago. Worth a look.
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