Sega Sammy to sell Japan resort to focus on core business

Sega Sammy Holdings says it will sell all the shares in its subsidiary that runs a major resort complex called Phoenix Seagaia Resort in southwestern Japan to a US investment group. The company says the aim is to focus on its core game business and other operations.

Sega Sammy says its board decided to sell the shares in Phoenix Resort to Fortress Investment Group. The firm expects to complete the deal at the end of this month.

Sega Sammy says it plans to acquire newly issued class shares to maintain a partnership by holding 20 percent of the Phoenix voting rights after the sale.

The seller expects to record gains of about 8.5 billion yen, or roughly 55 million dollars, from the transfer as extraordinary income in fiscal 2024. Officials say they want a fund with experience and expertise in hotel and resort operations to play a leading role in the facility's management to maximize corporate value.

The resort complex in Miyazaki Prefecture includes hotels, golf courses and convention halls. Sega Sammy acquired its operator in 2012. The resort had been managed by a foreign investment firm after the facility went bankrupt in 2001.