Nikko Co. (NSE:5343) announced a private placement of 4,600,000 shares at ¥116 per share for gross proceeds of ¥533,600,000 on September 11, 2014. The transaction will include participation from an existing investor Mitsuru Mitani, the Chairman and director of the company for 4,250,000 shares, new investor Mitani Co., Ltd. for 210,000 shares, and Hokuto Daikosha Y.K. for 140,000 shares.

As part of the transaction, Mitsuru Mitani will increase its stake from 2.91% to 19.94%, Y.K. Hokuto Daikosha will hold 0.58% stake in the company upon completion of the transaction, and MITANI Co.Ltd. will acquire 2.46% stake in the company through this transaction. The transaction has been approved by the board of directors of the company in the extraordinary board of directors' meeting. The subscription date and payment date for the transaction is September 30, 2014.

The transaction will take place through 3rd party allocation. The company will incur various expenses of ¥4,940,000 including ¥1,890,000 for registration expenses and ¥3,000,000 for attorney fees etc. The company will receive net proceeds of ¥528,000,000.

The transaction has been approved at board of directors meeting of the company.