2023-06-30 07:47:46
Japan Post announced on the 30th that it will record an extraordinary loss of regarding 85.1 billion yen in the first quarter (April-June) of the fiscal year ending March 31, 2024 due to the decline in the Rakuten Group’s stock price. Just over two years following the investment, the company faced an impairment loss equivalent to more than half of the acquisition price.
According to the announcement materials, the earnings forecast for this fiscal year (ending March 24) will remain unchanged for the time being, as it may not be possible to record a loss in the end depending on the stock price of Rakuten G in the future. Consolidated net income for this term is expected to be 240 billion yen, down 44% from the previous term.
Japan Post Logo
Photographer: Kiyoshi Ota/Bloomberg
In the capital and business alliance in March 2021, Japan Post underwrote regarding 131 million shares for regarding 150 billion yen (regarding 1,145 yen per share) in a third-party allotment of shares implemented by Rakuten G. However, Rakuten G continued to post losses due to the burden of prior investment in the mobile business, and announced in May this year that it would raise regarding 330 billion yen through public offerings and other means. Disgusted with the dilution, the stock price strengthened the downward trend, and the closing price of the stock price on the 30th was 499 yen.
Japan Post Holdings President Koya Masuda said at a press conference on the 27th that he was paying close attention to Rakuten G’s share price, saying, “We are paying close attention to share price trends because we have invested in Rakuten G.”
In the fiscal year ended March 2017, the company booked an impairment loss of regarding 400 billion yen due to the poor performance of its Australian logistics subsidiary Toll Holdings. It was acquired for 620 billion yen in 2015.
Related article
(Add announcement details and background)
1688120483
#Japan #Post #Posts #Extraordinary #Loss #Billion #Yen
