Rakuten to reorganize securities business
Rakuten Group, Inc announces that at a Board of Directors meeting held today, it resolved that Rakuten Card, Inc will transfer all shares of Rakuten Securities, Inc and Rakuten Investment Management, Inc to the company, through the payment of dividends in kind.
Next, Rakuten Securities and Rakuten Investment Management will establish Rakuten Securities Holdings, Inc through a joint stock transfer. The parent company of Rakuten Securities etc will transfer from the company to Rakuten Securities Holdings effective on October 3, and Rakuten Group will prepare the listing of Rakuten Securities Holdings.
Rakuten Securities has steadily expanded its customer base while demonstrating synergies within the FinTech Company, and in June this year, the number of accounts exceeded 8 million, making it one of the largest Internet securities companies in Japan. Assets under management are steadily expanding.
In addition, Rakuten Investment Management, which is a consolidated subsidiary of the Company and is responsible for the creation and management of investment trusts, and Rakuten Wallet, Inc, which is responsible for crypto asset trading services, have also contributed significantly to the expansion of the securities-related business provided by the Group. It is assumed that the three companies will continue to be important consolidated subsidiaries of the company in developing the Fintech business.
Rakuten Securities, Rakuten Investment Management, and Rakuten Wallet will become consolidated subsidiaries of Rakuten Securities Holdings, which will be newly established directly under Rakuten Group.
In the disclosure dated May 24, Rakuten Securities announced that it would start preparing for listing, but due to the above-mentioned organizational changes, Rakuten Securities Holdings will become the entity that applies for listing.
Regarding the listing of Rakuten Securities Holdings shares and related acts including the above, approval of the relevant authorities may be a prerequisite, and depending on the results of the examination in the preparatory process, there is a possibility Rakuten Group may even conclude that a further reorganization of the Group may be required, or that Rakuten Securities Holdings may not go public. Therefore, the scheduled listing date has not yet been decided.
Since this is a reorganization within the Group, the impact on the Company’s consolidated financial results will be minor.