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Rakuten’s share price soared, recording the rate of increase during the day for the first time in 18 years and 9 months. The company announced on the 12thIt announced a 150 billion yen capital joint venture with Japan Post and showed a strategy to expand the mobile business using the postal network across the country.
Rakuten shares on the 15th temporarily increased by 300 yen (24%) from the previous weekend to 1545 yen, which is a stop price that is full of the daily price cap, and has risen significantly for 4 business days. The rate of increase has been the highest since June 25, 2002 (38%). The level has returned to the highest level in 5 years and 3 months since December 3, 2015. Japan Post Holdings also temporarily rose 3.6% to 1,062.5 yen, growing for the third day in a row.
Japan Post will carry out a third party share allocation implemented by Rakuten, and the investment ratio will be 8.32%. Japan Post and Rakuten, which are under the Japan Post umbrella, signed a strategic alliance in December last year to improve logistics efficiency and will strengthen cooperation in a wide range of fields through an equity alliance.
The company also announced that it will raise a total of approximately 240 billion yen through the sale of treasury shares, in addition to implementing a third-party equity allocation to the subsidiary of Tencent Holdings in China and Wal-Mart in the United States. The funds raised will be used for “4G” and “5G” related base station equipment.
Hiroto Furuhashi, CEO of Rakuten, will be at Bloomberg on the night of the 12th.In an interview, he expressed his intention to use the network of 24,000 post offices across the country, dispatch staff, accept new applications online at a special booth, and get started “as soon as possible.”
Koichi Niwa, an analyst at Citigroup Global Markets, said in a report on the 12th that “the synergistic effect of the business alliance is excellent.” “While there is a dilution of stocks, the funds needed to enter telecommunications are expected to increase,” he said.
In the domestic mobile phone market, NTT DoCoMo, KDDI, etc.Competition for customers is intensifying with major companies like Softbank.
