Sanyo Special Steel Co., Ltd. (TSE:5481) announced a private placement of 24,012,500 common shares at a price of ¥2,800 per share for the gross proceeds of ¥67,235,000,000 on August 2, 2018. The transaction will include participation from returning investor, Nippon Steel & Sumitomo Metal Corporation (TSE:5401). Closing of the transaction is subject to taking effect of a securities registration statement that will be filed pursuant to the Financial Instruments and Exchange Act, the gaining of approval from competition authorities in Japan and overseas, and approval from the extraordinary general shareholders' meeting of the company scheduled to be held in February 2019.

Post-closing of the transaction, the investor will hold 51.5% stake from 15.3% stake in the company. The transaction will be completed by way of third party allocation method. The board of directors of company and investor approved the transaction.

The transaction is expected to close on March 28, 2019. The payment date will be from December 1, 2018 to November 30, 2019. The company will pay ¥237,000,000 as issuance costs including registration-related expenses, securities registration statement creation expenses in the transaction, resulting in net proceeds of ¥66,998,000,000.