Tanaka Chemical Corporation (JASDAQ:4080) announced a private placement of 950,000 shares at ¥404 per share for gross proceeds of ¥383,800,000 to existing investor, Sumitomo Chemical Co. Ltd. on December 24, 2014. The company will issue the shares via third party allotment. As part of the transaction, ¥191,900,000 will be transferred to the capital of the company and the balance to its reserve. The payment date for the transaction is expected on January 15, 2015. Pursuant to the transaction, the investor's stake will increase from 8.99% to 14.81%. The company expects to incur ¥13,000,000 as expenses in the transaction. The net proceeds from the transaction will be ¥370,800,000. The transaction was approved by the board of directors on the same date.

KPMG AZSA LLC, Financial Advisory Arm acted as financial advisor to the company.

On January 15, 2015, Tanaka Chemical Corporation closed the transaction.