Odakyu Electric to fully own its real estate unit

TOKYO, March 27 (Reuters) - Odakyu Electric Railway Co. Ltd. said on Tuesday that it would make Odakyu Real Estate Co. Ltd. a wholly owned unit in a $105 million stock deal aimed at boosting efficiency.

Under the deal, one Odakyu Real Estate share will be swapped with 0.65 share of Odakyu Electric Railway. The swap will take place on Sept. 1 and shares of Odakyu Real Estate will be delisted on Aug. 28.

Odakyu Electric Railway currently owns 48.1 percent of Odakyu Real Estate and the remaining 51.9 percent, or about 22 million shares, of Odakyu Real Estate will be acquired, making the deal worth about 12.4 billion yen ($105 million) based on the current stock price.

By midafternoon on Tuesday, shares of Odakyu Real Estate were up 1.6 percent at 564 yen, while those of Odakyu Electric Railway were down 1.6 percent to 870 yen.

Odakyu Electric plans to issue new shares for the share swap although details have not been decided.

With their core railway business struggling to expand, many railway firms have sought revenues from the real estate business as they own substantial land along their railway lines.

"We are trying to unify our housing and property management businesses," said a spokesman for Odakyu Electric. ($1=118.24 Yen)

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