OSAKA -- Troubled retailer Mycal Corp. said Tuesday it has agreed to sell a 54.59 percent stake in its credit card subsidiary, Mycal Card Inc., to another credit card company, Sanyo Shinpan Finance Co.
The Osaka-based retailer said it plans to use proceeds from the sale to reduce its 1.160 trillion yen in interest-bearing debts.
Mycal has a total of 16,586,760 shares in Mycal Card. The latest sale is part of Mycal's three-year restructuring plan, under which it aims to cut its group interest-bearing debts to 910 billion yen by the end of August.
Mycal earlier sold its equity stake in sports club operator People Co. to video game software developer Konami Co.
Sanyo Shinpan said in a separate statement that it will purchase up to 51 percent of outstanding shares in Mycal Card, including Mycal's stake, at 4,100 yen per share over a 21-day period by April 18 for 63.5 billion yen.
Following its purchase of the stake, Sanyo Shinpan will place members of its own staff on the board of Mycal Card to fully participate in the company's management, it said.