Kokudo Corp. President Minoru Mikami will resign to take responsibility for a scandal surrounding the falsification of Kokudo’s shareholdings in group firm Seibu Railway Co., industry sources said Friday.

The resignation will come after the Tokyo Stock Exchange and financial regulators end their investigations into the falsification by Kokudo and Seibu Railway of their financial statements and shady sales of Kokudo’s shareholdings in the railway.

Mikami was a close aide to former Kokudo Chairman Yoshiaki Tsutsumi, who on Oct. 13 resigned from all the posts he held in the company and in Seibu Railway group firms in connection with the scandal.

The scandal deepened after it was found that Kokudo, an unlisted firm that runs the Prince Hotel chain and sports facilities, sold some of its shares in Seibu Railway without telling buyers that the railway firm’s stock ownership conditions made it subject to delisting.

Some of the purchasers, most of them major companies, have asked Kokudo to buy back the shares.

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