Railway operator Tokyu Corp. said Friday it will make Tokyu Tourist Corp. a wholly owned subsidiary on Jan. 1.

The move, which will be implemented via an equity swap, is designed to assist the reconstruction of the loss-making unit.

Tokyu Tourist, the sixth-largest travel agency in Japan, is currently owned 66.61 percent by the parent firm and is listed on the first section of the Tokyo Stock Exchange. It will be delisted in late December, according to Tokyu.

After obtaining approval from Tokyu Tourist shareholders at an extraordinary meeting scheduled for Nov. 27, Tokyu will allocate its stock to Tokyu Tourist shareholders at a ratio of 0.16 Tokyu share for each Tokyu Tourist share.

Tokyu Tourist posted a group net loss for the seventh consecutive year in the 12 months to Dec. 31, 2002.

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