Kawai Musical Instruments Manufacturing Co., Ltd. (TSE:7952) announced a private placement of 450,500 shares at ¥2,278 per share for gross proceeds of ¥1,026,239,000 with new investor, Onkyo Corporation on November 5, 2015. The company signed an agreement with the investor. As part of the transaction, the investor will acquire 5.26% stake in the company.

The transaction will happen through third party allotment. The amount of ¥513,119,500 will be added to the capital of the company. The net proceeds from the transaction will be ¥1,019,739,000, after deducting estimated amount of various issue costs of ¥6,500,000.

The expenses include legal attorney fees of about ¥5,000,000, securities registration statement creation expenses of about ¥1,000,000 and other expenses related to registration expenses of about ¥500,000. The settlement date for the transaction is November 24, 2015.