At a Board of Directors meeting today, a resolution was passed to establish a stock unit system and to perform a stock split.
Reason for Stock Split and the Adoption of a New Stock Unit System
This stock split and the change of stock trading unit were in response to the "Action Plan for Consolidating Trading Units" released by the Japanese Stock Exchanges Conference in November 2007, to improve the convenience and liquidity of listed stocks. A 1:100 stock split and unit stock system of one unit comprising 100 shares means there is no change in the investment unit required in Rakuten shares.
Record date: June 30, 2012 (Actual allocation date: June 29, 2012)
Effective date: July 1, 2012
In addition, the new unit stock system with a new basic stock exchange trading unit of 100 shares takes effect on June 27, 2012.
At a Board of Directors meeting today, Rakuten, Inc. has resolved to propose an agenda to amend Article 6 (Total number of shares authorized to be issued) of the current Articles of Incorporation and established the provisions of Rights with respect to shareholders holding shares less than one unit, in order to increase total number of shares authorized to be issued pro rata to the stock split. These proposals will be resolved at the 15th Annual General Shareholders’ Meeting to be held on March 29, 2012. Further details may be found in the company’s timely disclosure “Notice on partial amendments to the Articles of Incorporation” today.
The impact of adaption a stock unit system and to perform a stock split to Rakuten, Inc. is estimated to be minor. Rakuten, Inc. and its subsidiaries do not disclose earnings forecasts as these business operations include an Internet service business characterized by high uncertainty and financial related businesses such as securities business whose results heavily depend on highly volatile markets. This precludes us from making earnings forecasts.
Further details may be found in the FAQs of the Rakuten Investor Relations site: https://global.rakuten.com/corp/investors/faqs/