Nakayama Steel Works, Ltd. announced that it has received ¥9.01 billion in funding from a group of investors.
August 12, 2013 at 05:00 am
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Nakayama Steel Works, Ltd. (TSE:5408) announced a private placement of common shares for gross proceeds of up to ¥9,000,000,000 on January 23, 2013. The company will issue the shares by third party capital increase to existing investors Nippon Steel & Sumitomo Metal Corporation and Nippon Steel Trading Co., Ltd., Air Water Inc., Hanwa Co. Ltd., Osaka Gas Co., Ltd., and new investor Daiwa PI Partners Co.Ltd. Nippon Steel & Sumitomo Metal Corporation will increase its shareholding from 9.8% to 20%. If the allocations are made, the investors are believed to hold about two thirds of voting shares of the company.
On March 28, 2013, the company announced that the transaction was approved by the board of directors. The company expects to issue 346,750,000 shares at ¥26 per share for gross proceeds of ¥9,015,500,000. Nippon Steel & Sumitomo Metal Corporation will subscribe for 94,246,000 shares for 9.75% stake increasing total stake to 19.8% from the current 10.05%, Hanwa Co. Ltd. will subscribe for 99,113,000 shares for 17.88% stake, Nippon Steel Trading Co., Ltd. will subscribe for 52,404,000 shares for 8.67% stake, Daiwa PI Partners Co., Ltd. will subscribe for 54,102,000 shares for a 10% stake, and Air Water Inc. will subscribe for 46,885,000 shares for a 8.41% stake in the transaction. The transaction is conditional upon approval of the 119th general shareholders' meeting to be held on June 18, 2013. The company will incur approximately ¥33,000,000 as expenses. The subscription period will expire on August 27, 2013. The transaction is expected to close on August 27, 2013.
On August 7, 2013, the company amended the terms of the transaction. The company will issue 346,636,000 shares for gross proceeds of ¥9,012,536,000. Nippon Steel & Sumitomo Metal Corporation will subscribe for 94,212,000 shares, Hanwa Co. Ltd. will subscribe for 79,856,000 shares, Nippon Steel Trading Co., Ltd. will subscribe for 52,387,000 shares, Air Water Inc. will subscribe for 46,866,000 shares, Daiwa PI Partners Co., Ltd. will subscribe for 54,085,000 shares, and Osaka Gas Co., Ltd. will subscribe for 19,230,000 shares in the transaction. The company expects to receive net proceeds of ¥8,979,536,000.
On August 12, 2013, Nakayama Steel Works, Ltd. closed the transaction.
Nakayama Steel Works, Ltd. is a Japan-based company mainly engaged in the manufacture and sale of steel. The Company operates through three business segments. The Steel segment is involved in the manufacture and sale of primary steel products and secondary processed products, including steel strips such as hot-rolled steel strips, thick plates and intermediate plates, steel bars such as wire rods, bar-in coils and rebar, steel slabs and by-products. The Engineering segment is involved in the order and sale of steel fish reefs, breeding reefs, rolls, valves and others, as well as the process and assembly of machines. The Real Estate segment is involved in the lease and sale of the real estate.
NAKAYAMA STEEL WORKS, LTD. 
