Marusho hotta Co.,Ltd. (TSE:8105) announced a private placement of 35,000,000 shares at a price of ¥55 per share for gross proceeds of ¥1,925,000,000 on May 23, 2017. The transaction will include participation from new investor RIZAP Group, Inc. (SPSE:2928). The company has concluded a capital and business tie-up contract with the investor.

The transaction has been approved by the board of directors of the company. The shares will be issued through third party allotment. The company will pay expenses of ¥15,000,000 in the transaction.

These expenses include registration-related expenses, securities registration statement creation expenses, legal expenses and other expenses. The company will receive net proceeds of ¥1,910,000,000. The investor will acquire 62.27% stake in the company through this transaction.

The transaction is expected to close on June 28, 2017.