Struggling Otsuka Kagu Sells Shareholdings for One B. Yen

Economy

Tokyo, Oct. 3 (Jiji Press)--Struggling Japanese furniture retailer Otsuka Kagu Ltd. <8186> has sold part of its shareholdings for around one billion yen, it was learned Wednesday.

The company is expected to use the proceeds to cover operating costs and for other purposes, informed sources said.

The move is also aimed at demonstrating Otsuka Kagu's resolve to promote business reconstruction at a time when the company is still working to pick a capital and business alliance partner, the sources said.

As of the end of June, Otsuka Kagu held shares in some 10 listed firms.

Of them, Otsuka Kagu sold shares in such companies as Sumitomo Mitsui Financial Group Inc. <8316> and Mizuho Financial Group Inc. <8411>, both major banking groups, and railway and hotel operator Seibu Holdings Inc. <9024> on the stock market between July and September, according to the sources.

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Jiji Press