bullish
If Rakuten (4755) Combines Financial Units... Who Wins and How? Well... It's Complicated
1.2k 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 Mon, 29 Jul 2024 16:26
Today, Rakuten Bank and parent extended their "Fintech Reorganisation" timetable to Jan 1.
I still think the best way is to have Rakuten Bk issue new shares, inject cash into Securities, Card, Insurance. Sec buys back Rakuten's holding. Later, Card/Insurance do too. Rakuten gets deemed div tax treatment on sub transfers to Bank. Bank can absorb more ownership as profits build. Great for Rakuten.
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