Nippon Seiro Co., Ltd. (TSE:5010) announced a private placement of 1,815,000 treasury shares at ¥259 per share for gross proceeds of ¥470,085,000 with existing investor, Itochu Corporation on February 14, 2014. The transaction will happen through third party allocation. After the transaction, the investor will hold stake of 8.60% and will increase its voting rights in the company from 0.64% to 10%.

The investor will become largest shareholder of the company on closing of the transaction. The company will have net proceeds of ¥467,085,000, after deducting estimated expenses for the issuance of ¥3,000,000, which includes estimated various expenses for the issuance are attorney fees, and creation of documents expenses, and excludes consumption tax. As part of the transaction, the investor will designate a part time director in the company's board.

The company will hold its 87th general shareholders' meeting on March 28, 2014; will include in the agenda the selection of one director to be nominated by investor. The agreement for the transaction was signed on the same date. The application, settlement, and payment date for the transaction will be March 3, 2014.

The board of directors of the company resolved to carry out a capital increase. There will be 3,110,412 issued treasury shares of the company upon completion of the transaction.