Kintetsu Corporation (TSE:9041) agreed to acquire remaining 0.99% stake in Kintetsu Real Estate Co.,Ltd. from The Kinki Sharyo Co., Ltd. (TSE:7122) for approximately ¥250 million on May 13, 2014. In a related deal, Kintetsu Corporation will transfer to holding company structure. Kintetsu Corporation will transfer its railway business, highline business and tourist attraction business to a wholly owned subsidiary which was set up on April 30, 2014. Kintetsu Corporation will transfer real estate business to Kintetsu Real Estate, in which the company holds a 99.01% stake. Kintetsu Corporation will transfer hotel business and inn business to a wholly owned subsidiary engaged in hotel business. Kintetsu Corporation will transfer logistics business to wholly owned subsidiary Kintetsu Retail Service.

The signing of the share exchange agreement took place on August 11, 2014. The exchange ratio is 12.2 of Kintetsu Corporation's common shares for every common share of Kintetsu Real Estate. For the period ended March 2014, Kintetsu Real Estate had total assets of ¥124 billion, net assets of ¥31.88 billion, sales of ¥90.29 billion, operating profit of ¥5.83 billion and net profit of ¥2.1 billion. The transaction was resolved by Board of Directors of Kintetsu Corporation on August 11, 2014. The tentative effective date of the share exchange will be October 1, 2014. Suzuki Kuniaki CPA Office acted as valuer for Kintetsu Corporation.