ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

Developer Mitsui Fudosan to acquire Tokyo Dome for $1bn

Ballpark operator's management faces pressure from major shareholder

Tokyo Dome posted a net loss in the fiscal first half as canceled events battered its bottom line. (Photo by Akira Kodaka)

TOKYO -- Japanese property developer Mitsui Fudosan will acquire Tokyo Dome -- the home stadium of the Yomiuri Giants pro baseball team -- with Japanese media company Yomiuri Shimbun Group, for 120 billion yen ($1.15 billion).

The two companies will operate Tokyo Dome and its surrounding facilities to develop new amusement facilities to be known as the "Ball Park." The two parties will leverage their expertise in attracting and redeveloping tenants.

Mitsui Fudosan's announcement on Friday confirms Nikkei's earlier report.

The real-estate developer will acquire Tokyo Dome shares through a takeover bid. The purchase period is from Nov. 30 this year to Jan. 18, 2021. The price is set at 1,300 yen per share, 24% above the closing price on Nov. 27. After that, Yomiuri Shimbun Group will take a 20% stake in Tokyo Dome. The baseball team is an affiliate of the group.

Mitsui Fudosan sees the amusement facilities as a new pillar of growth. The company has been working on developing complex facilities in recent years. But the coronavirus pandemic has dealt a blow to many amusement operators due to canceled events. It is possible that more companies will follow Mitsui Fudosan in supporting struggling developers.

Tokyo Dome posted a net loss of 9.8 billion yen for the February-July half, compared with a 4.6 billion yen profit a year earlier, as events were canceled amid the coronavirus pandemic.

Hong Kong hedge fund Oasis Management, a major shareholder with a nearly 10% stake, has pressed Tokyo Dome to improve management of its hotel and theme park businesses. In October, it called for Tokyo Dome President Tsutomu Nagaoka and two other board members to resign, citing insufficient progress. The Oasis proposal will be taken up at an extraordinary shareholders meeting on Dec. 17.

Mizuho Bank and Fukoku Mutual Life Insurance are also large shareholders, each with just under a 5% stake. General contractor Takenaka holds slightly less than 4%.

Considering the deepening rift, Mitsui Fudosan gaining control of Tokyo Dome is seen helping to stabilize the company. And with Mitsui Fudosan taking on major redevelopment projects in Tokyo, the deal will pave the way for the two companies to cooperate in the field.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more