Shareholders of Seibu Railway Co. endorsed a plan Wednesday to reorganize the company's group operations under a holding firm.
The move will end control of the railway and resort conglomerate by Kokudo Corp. and business tycoon Yoshiaki Tsutsumi, who received a suspended prison term in October for engaging in insider trading and falsifying Seibu's fiscal 2003 financial statements.
Under the reorganization to be completed by the end of March, Seibu Holdings Inc. will be established to put Seibu Railway Co. and Prince Hotels Inc. under its wing.