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.
(Sign Up to Access)
Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
  • Unlock all research summaries
  • Follow top, independent analysts
  • Receive personalised alerts and emails
  • Access Briefings, Analytics, and Events

Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.

Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.

Already have an account? Sign In Now
Full Insight
(Paid Plans Only, 9-minute read)
(Paid Plans Only)
Top 5%
Travis Lundy
Pan-Asia Catalysts/Events
Quiddity Advisors
Japan & Hong KongEquitiesEvent-DrivenQuantitative Analysis
Price Chart(Sign Up to Access)