Struggling condominium builder Towa Real Estate Development Co. said Wednesday that Mitsubishi Estate Co. will become its largest shareholder under an agreement to create a "strategic partnership."
Mitsubishi Estate will acquire 33.4 percent of voting rights by buying 8.9 billion yen in new common shares to be issued by Towa, with payment due in late March 2005.
The share issue is part of Towa's third-party allotment of new shares totaling some 25 billion yen.
In addition, the capital tieup arrangement calls for Mitsubishi Estate to acquire a 51 percent stake in Towa Community Co., Towa's wholly owned condominium management subsidiary, for 2.8 billion yen.