Development Bank of Japan (DBJ), the state-owned policy lender wholly funded by the finance ministry, is buying into Hagihara Industries, a Kurashiki-based maker of flat-yarn plastic products, tarpaulins and industrial slitting machinery. The two sides signed a capital and business alliance agreement on September 7, and Hagihara's board approved a third-party allotment of 486,600 treasury shares to DBJ at ¥1,863 apiece. Payment is due September 30; the sale will bring in ¥906.5mn gross, ¥904.5mn after roughly ¥2mn in issuance costs.
| Feature | Detail |
|---|---|
| Shares allotted | 486,600 treasury common shares |
| Placement price | ¥1,863 per share |
| Gross proceeds | ¥906.5mn (¥906,535,800) |
| Net proceeds | ¥904.5mn after about ¥2mn in issuance costs |
| Payment date | September 30, 2026 (planned) |
| DBJ voting stake after allotment | 3.32% |
| Dilution | 3.27% of shares outstanding (3.44% of voting rights) |
| Planned use of proceeds | About ¥1.0bn for overseas capacity, November 2027 to October 2028 |
The placement price is the one-month average of Hagihara's Tokyo Stock Exchange closing price between August 5 and September 4, a 0.80% discount to the September 4 close of ¥1,878 but a 4.37% premium to the three-month average and a 6.64% premium to the six-month average. All three of Hagihara's statutory auditors, including its two outside auditors, signed off on the pricing as not unduly favorable to DBJ.
Once the shares are issued, DBJ will hold 3.32% of Hagihara's voting rights, diluting existing shareholders by 3.27% of shares outstanding. The reshuffle also triggers a separate regulatory filing: founder-linked holding company Hagihara Co., the issuer's largest shareholder, will see its voting stake slip from 10.16% to 9.80% purely because the enlarged share count lowers everyone's percentage, not because it sold any stock. It keeps its position as the top holder.
The money has a specific destination. Hagihara wants roughly ¥1.0bn for overseas production capacity between November 2027 and October 2028, aimed at two product lines: a concrete-reinforcement fiber used in road paving and infrastructure work, and a packaging material with strong demand in the US market. Both sit inside "LINK THE LEAP," the mid-term plan Hagihara adopted in December 2025, which pushes higher-value products and overseas market expansion as a lead growth strategy.
Beyond the cash, DBJ is offering what it calls integrated financial and non-financial support: help with capital policy, disclosure, fundraising and M&A advisory, delivered through a multi-year dialogue program the bank runs for companies it backs. Hagihara says it chose DBJ partly because the bank is wholly government-owned and has run similar support arrangements for other listed companies before.
Because the dilution stays under 25% and the deal does not change who controls the company, Hagihara did not need an independent third-party opinion or a shareholder vote to proceed. The package still depends on the payment actually clearing on September 30, and on the roughly ¥1.0bn in overseas spending being carried out on the schedule Hagihara has laid out; neither has happened yet.