U.S. distressed asset investor Lone Star has won the right to buy the Osaka Prefectural Urban Development Co, half owned by Japan’s Osaka prefecture, for 78 billion yen ($783 million), two people with direct knowledge of the transaction told Reuters.

Lone Star outbid its peer Fortress Investment Group and a local railway company Nankai Electric Railway Co, to buy the company, the sources said.

The divestment of the company that runs railway systems and warehouses reflects a privatization strategy by Osaka Prefecture.

Osaka Prefecture owns 49 percent stake in the company while Osaka Gas Co, Kansai Electric Power Co and Japanese banks including Resona Holdings Inc own a 51 percent. (Reuters)