In today’s briefing:
- 2 Rakuten Subsidiaries’ Listings Run Counter to the Dissolution of Parent-Subsidiary Listings
2 Rakuten Subsidiaries’ Listings Run Counter to the Dissolution of Parent-Subsidiary Listings
- Cash generation through the subsidiaries’ IPOs will only buy time, and investors are likely to focus on when Rakuten will move to solve the problems in its cell phone business.
- In recent years, TSE’s market reorganization has focused attention on parent-subsidiary listings, and there’ve been moves to convert listed subsidiaries into wholly owned subsidiaries or sell subsidiaries to other companies.
- For Rakuten, subsidiary IPOs are an essential means of raising cash, but TSE’s recognition of the governance issues involved in parent-subsidiary listings raises questions about Rakuten’s two parent-subsidiary listings.
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