Japanese billionaire Yusaku Maezawa is selling a majority stake in his internet fashion empire, Zozotown (Zozo), to Yahoo Japan in a deal that could be worth $3.7 billion, the Financial Times reported.
Yahoo Japan, which is part of the SoftBank Group, plans to tender an offer to acquire 50.1% of Zozo shares for ¥2,620 ($24) per share and make the company a subsidiary.
Mr Maezawa who will step down as Chief Executive “to pursue a new path” will sell a 30% stake in Zozo to Yahoo Japan for $2.2 billion.
The operator of the Zozotown clothing store said it has appointed Kotaro Sawada as chief executive officer to replace Mr Maezawa, who currently owns a total of 36% of the company.
Shares in Zozo rose as much as 19% following the announcement, while Yahoo Japan briefly rose 5.7%.
According to Forbes, Mr Maezawa is Japan’s 22nd richest man with $2 billion in assets.