Kokudo Corp. sold some of its shares in Seibu Railway Co. without telling buyers that the railway firm's stock ownership conditions met delisting standards, sources familiar with the matter said Wednesday.
Kokudo, an unlisted firm running the Prince Hotels chain and sports facilities, told the buyers -- including Sapporo Breweries Ltd., Kirin Brewery Co. and major construction firms -- that the sales were aimed at boosting its management transparency, the sources said.
Kokudo's failure to explain the equity ownership conditions could turn out to be a violation of the Securities and Exchange Law for insider trading.