Rakuten shares post the biggest gain in 18 years on partnership news
Chinese internet company Tencent will take a 3.6% stake in the company
Stocks impacted: Rakuten (4755)
Shares of the Japanese tech giant jumped 24% on Monday, the biggest gain in 18 years, extending the rally after the company’s announcement that it plans to raise $2.2 billion in order to better compete with its U.S. rivals. Last Friday, the firm said it will sell an 8.3% stake to postal and banking giant Japan Post. Meanwhile, Chinese internet company Tencent will take a 3.6% stake, and U.S. retailer Walmart will buy a 0.9% stake. As a reminder, Rakuten’s revenue last year stood at 1.46 trillion yen ($13.35 billion) — an increase of 15.2% from a year ago. However, the firm incurred an operating loss of 93.85 billion yen in 2020, reversing the operating profit of 72.75 billion yen a year ago. Last year, Rakuten acquired a 20% stake in Walmart’s Japanese supermarket unit.
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