Tower Records Japan is taking over the 30-store Wave music chain in a stock-swap deal with Parco Inc., the latter's Tokyo-based parent.

Tower Records Japan is taking over the 30-store Wave music chain in a stock-swap deal with Parco Inc., the latter's Tokyo-based parent.

Under the agreement, which takes effect in mid-April, all of Wave's outstanding debts will be transferred to Tower. Tower will increase its capital by allocating third-party shares to Parco, of the same value as the Wave shares transferred to Tower.

"We hope that by developing the dual brands of Tower Records and Wave, we will emerge as the leading company in the business," Tower says in a statement.

In May 2002, Tower Records Japan was sold to Nikko Principal Investments (NPI) Japan, a wholly owned subsidiary ofsecurities company Nikko Cordial. Nikko plans to make a public offering of Tower shares in the future.

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