Chuetsu Pulp & Paper Co., Ltd. announced that it expects to receive ¥3.23 billion in funding from Oji Holdings Corporation.
December 01, 2014
Share
Chuetsu Pulp & Paper Co., Ltd. (TSE:3877) announced a private placement of 16,892,000 common shares and 108,000 treasury shares at ¥190 per share for gross proceeds of ¥3,230,000,000 on December 2, 2014. The shares will be issued to existing investor Oji Holdings Corp. Pursuant to the transaction; the investor's stake in the company will increase from 9.03% to 20.62%. The securities will be issued through third party allocation. The company will receive net proceeds of ¥3,199,000,000 after deducting issuance expenses of ¥31,000,000 including registration expenses, financial advisor fee, and stock exchange listing related expenses. The payment will be received from December 18, 2014 to May 29, 2015. On the same date, the board of directors of the company approved the transaction. The transaction is subject to a condition to receive a report that a cease and desist order will not be carried out from the Japan Fair Trade Commission in accordance with the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade.
On May 26, 2015, the company announced that it has received approval for the transaction from Japan Fair Trade Commission.
Chuetsu Pulp & Paper Co.,Ltd. is a company mainly engaged in the manufacture and sale of paper and pulp. The Company operates in two business segments. The Paper and Pulp Manufacturing segment manufactures and sells various paper products, such as newsprint paper, printing paper, packing paper, special paper, paperboards, processed products and pulp, among others. The Power Generation segment sells electricity. The Others segment is engaged in business activities include manufacture and sale of cellulose nanofiber related products, paper bags, paper tubes, cardboard, notebooks, and other paper products; afforestation and greening business; pharmaceutical manufacturing business; paper tube processing; paper cutting and sorting packaging; mechanical equipment design construction and repair; transportation of pulp and paper and other raw materials; manufacturing, purchasing and sale of wood chips; insurance agency; industrial waste treatment, and among others.