Mitsui Fudosan Co. said Friday it will make its affiliate Mitsui Real Estate Sales Co. into a wholly owned subsidiary on Oct. 1 through a share-swap scheme.
The move is intended to boost the profitability of the Mitsui group's real estate operations, it said.
Mitsui Fudosan engages in real estate leasing and sales, and Mitsui Real Estate has acted as a major intermediary in sales of real estate properties, such as condominiums and homes.
Mitsui Fudosan currently owns 71.73 percent of Mitsui Real Estate.
The company said it plans to purchase the remaining 28.27 percent stake from Mitsui Real Estate's other shareholders, including Mitsui Home Co. and Mitsui Trust & Banking Co.
Under the arrangement, one Mitsui Real Estate share will be swapped for 0.475 Mitsui Fudosan share. The planned share-swap is contingent upon shareholders' approval at a general meeting slated for late June.