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15.03.2021

Rakuten shares post the biggest gain in 18 years on partnership news

 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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