Rakuten has agreed to raise JPY 242.3 billion from the sale of shares to strategic partners Japan Post, Walmart and Tencent, as well as its founder and CEO Hiroshi Mikitani. The money will support its mobile network roll-out and development of new mobile services across its business.
Japan Post and Walmart are already distribution partners for Rakuten's e-commerce business, while China-based Tencent is a new investor that is expected to help Rakuten develop its digital entertainment and e-commerce services. The placement is priced at JPY 1,145 per share, equal to Rakuten's closing price the day before the announcement. Japan Post will take 131 million shares (an 8.32% stake), Tencent 57.4 million (3.65%), Walmart 14.5 million and Mikitani's two holding companies will each take 4.4 million shares.
The shares are a combination of new and treasury stock. Companies associated with Mikitani will remain in control, with just over 34 percent of Rakuten's shares in total.
Rakuten said it was already in contact with Tencent regularly on internet developments and the companies started talks early this year on a share subscription. The shares will be acquired by Tencent's investment company Image Frame Investment.
