Tanaka Chemical Corporation (JASDAQ:4080) announced a private placement of 10,500,000 common shares at a price of ¥626 per share with existing investor, Sumitomo Chemical Co. Ltd. (TSE:4005) for gross proceeds of ¥6,573,000,000 on August 31, 2016. The transaction is expected to close on October 31, 2016.

The stake of the investor will increase by 35.28%, from current 14.82% to 50.10% upon closing. The shares will be issued by third party allotment. The company will pay various issue costs of ¥57,000,000 and will receive net proceeds of ¥6,516,000,000 in the transaction.

The transaction has been approved by the board of directors.