UPDATE 1-Misawa shares jump on report to drop resorts


(Recasts with share prices, company comment, details)

TOKYO, Dec 24 (Reuters) - Shares in Misawa Homes Holdings Inc. jumped more than 6 percent on Friday after a newspaper said the troubled home builder would quit the leisure and resort business as part of its restructuring.

Media reports have also said the company would seek over 200 billion yen ($1.93 billion) in aid.

The Nihon Keizai business daily said in its Friday report Misawa Homes' lenders and a state-backed corporate turnaround body would require Misawa to focus on its main home-building business to ensure rehabilitation of the company, which would also be supported by Toyota Motor Corp. .

Losses from the sale of golf courses, properties, and undeveloped lots would likely top 30 billion yen, the paper added.

A Misawa spokeswoman said nothing had been decided on its rehabilitation plan.

A Toyota spokesman said the firm had not decided if it would assist with the home builder's restructuring. The Nikkei said Toyota would help Misawa by taking a 10 percent stake and by forming a business alliance between Misawa and Toyota Home, a unit of the auto maker.

A day earlier, the paper reported that UFJ Bank, a core unit of UFJ Holdings and Misawa's main lender, and the Industrial Revitalization Corp. of Japan would waive 120 billion yen in debt and provide some 20 billion yen in debt-for-equity swaps.

Shares in Misawa Resort Co. Ltd. , Misawa's resort business unit and nearly 40 percent owned by the home builder, climbed as much as 18.64 percent to 350 yen before ending morning trade up 5.76 percent at 312 yen.

Misawa Homes' shares were up 6.23 percent at 290 yen by midday. The Nikkei 225 average was up 1.22 percent.

The Tokyo market was closed on Thursday for a public holiday. ($1=103.61 yen)



Follow Us

Sponsored Introduction Continue on to (or wait seconds) ×