Passport Co., Ltd. (JASDAQ:7577) announced that it has entered into a contract for a private placement of 9,730,000 common shares at ¥117 per share for gross proceeds of ¥1,138,410,000 on April 18, 2016. The transaction will include participation from a new investor, Kenkou Corporation, Inc. As part of the transaction, the investor will acquire 65.83% stake in the company. The investor will subscribe shares through third party allocation method.

The company will pay financial advisor fees of ¥10,000,000, ¥3,000,000 as legal fees, and ¥3,000,000 as registration-related expenses and other fees. The board of directors of the company approved the transaction. The transaction is subject to shareholder's approval of the company on May 26, 2016 at the general meeting and approval from the Fair Trade Commission.

The transaction is expected to close on May 27, 2016.