Daiei to consolidate 4 group firms in Fukuoka+.

FUKUOKA, Aug. 29 Kyodo

(EDS: UPDATING WITH ANNOUNCEMENT BY DAIEI)

Ailing retailer Daiei Inc. said Thursday it will consolidate by next February four of its group businesses related to the Fukuoka Dome baseball stadium, home of the Fukuoka Daiei Hawks professional baseball team.

The businesses are Fukuoka Daiei Real Estate (FDRE), a company mainly managing the land and buildings of the baseball stadium, Fukuoka Dome, a company operating the stadium, Hawks Town, a Tokyo-based consulting company, and Shin Kobe Kaihatsu, a Kobe-based hotel operator.

Daiei plans to consolidate the operations of the four entities into FDRE, which itself will become a subsidiary of the parent company to make the business responsibility of Daiei clearer, it said.

The affiliates will conduct a series of sales and purchases of equity stakes among themselves to clear the way for the consolidation.

Hawks Town will sell its 66% stake in FDRE to Daiei so the company can become a Daiei subsidiary.

Tadashi Nakauchi, second son of Daiei founder Isao Nakauchi, will sell his 50% stake in Hawks Town to FDRE, and 10% stake in Shin Kobe Kaihatsu to Fukuoka Dorm.

Hawks Town and Shin Kobe Kaihatsu will be liquidated after handing over their operations to FDRE. Fukuoka Dorm will also transfer its operations to FDRE.

Meanwhile, the younger Nakauchi, who owns 40% of the Fukuoka Daiei Hawks, will retain his interest in the baseball club for the time being, Daiei said.