The Kyoto Hotel, Ltd. (TSE:9723) announced a private placement of 702,400 common shares at ¥854 per share for gross proceeds of ¥599,849,600 on November 11, 2015. The transaction will include participation from new investors, Development Bank of Japan, Ltd., Investment Arm and Senshu Ikeda Capital Co., Ltd. for 585,400 shares and 117,000 shares respectively. The company will issue the shares to the investors via third party allotment method.

As part of the transaction, the company will transfer ¥299,924,800 to the registered capital of the company and the balance of ¥299,924,800 to its capital reserve. On closing, the investors will hold 5.28% and 1.05% stakes in the company respectively. As part of the transaction, the investors will acquire 6.33% stake in the company.

The company expects to incur issue costs of ¥18,000,000 in the transaction which includes advisory expenses, legal expenses, document creation expenses, registration taxes, and listing-related expenses. The net proceeds from the transaction will be ¥581,849,000. The settlement date for the shares is expected on November 27, 2015.

The transaction was approved by the board of directors of the company.