Yahoo Japan Corp. said Sept. 12 it plans to buy a majority stake in cutting-edge fashion retailer Zozo Inc., as part of efforts to attract young people to its e-commerce empire.

Zozo operates Zozotown, a group of retail websites specializing in youth fashion that has seen enormous growth in recent years.

It has already accepted the takeover bid from Yahoo Japan. The transaction value is estimated to be 400.7 billion yen ($3.7 billion).

Yusaku Maezawa, 43, announced Zozo's capital and business tie-ups with Yahoo Japan on his Twitter account in the morning, adding that he will step down as president.

Referring to his replacement, company director Kotaro Sawada, 48, Maezawa said, "With Zozo's future in the hands of the new president, I will now pursue a new path."

Maezawa, Sawada and Kentaro Kawabe, president of Yahoo Japan, were to hold a joint news conference in the evening.

Yahoo Japan is expected to start the takeover bid process in early October, purchasing up to 50.1 percent of issued stocks in Zozo at 2,620 yen per share.

Maezawa currently owns about 37 percent of Zozo's issued stocks. For the acquisition, he intends to unload most of his shares, which will account for about 30 percent of Zozo's shares.

Zozo intends to maintain the stock listing after the takeover bid.

Yahoo Japan is in the process of beefing up its online shopping business and plans to launch a new e-commerce site, "PayPay Mall," and a flea market app called "PayPay Furima" in autumn.

The company said it discussed a possible business alliance with Zozo for the new e-commerce site and confirmed Maezawa's intention to sell his equity in the company in late June.

Management-level talks between the companies toward the capital and business tie-up have been in progress since early July.

Yahoo Japan, which became a consolidated subsidiary of Softbank Corp. in June, will adopt a holding company system from Oct. 1 and change its name to "Z Holdings."

Yahoo Japan's trading volume for Internet shopping as of the fiscal year ending March 2019 was 2.34 trillion yen, more than 1 trillion behind its competitor, Rakuten Inc.