Yahoo Japan offers to buy travel site Ikyu for $828 million

A website of Yahoo Japan Corp is seen on a computer screen in Tokyo in this August 19, 2009 file photo. REUTERS/Stringer

(Reuters) - Yahoo Japan said it offered to take over travel website Ikyu Corp for around 100 billion yen ($828 million), as the Japan-based e-commerce company aims to expand its travel and restaurant reservation business.

Yahoo Japan, owned 35.5 percent by Yahoo Inc and 36.4 percent by SoftBank Group, said in a statement it offered 3,433 yen per share for Ikyu, a premium of around 42 percent to its close earlier on Tuesday.

The move comes as the U.S.-based Yahoo Inc is considering what to do with its stake in Yahoo Japan, worth about $8.5 billion at current exchange rates.

Yahoo Inc shelved plans to spin off its stake in Chinese e-commerce giant Alibaba Group Holding Ltd on Wednesday, under pressure from activist investors worried about tax payments, and said instead it is looking at creating a separate company to hold the rest of its assets.

Reporting By Chris Gallagher and Ritsuko Ando; Editing by Gopakumar Warrier