Cluster Technology, a Tokyo- and Nagoya-listed resin-parts maker, will sell 996,677 new shares to Seiko Epson at ¥301 each, raising ¥300mn gross, its board decided on October 9. Payment is due October 27 and depends on its securities registration statement taking effect, so Epson does not yet hold the shares.
Stake and dilution
Once paid, Epson would hold 14.91% of voting rights and rank first among shareholders. Existing holders face dilution of 17.51% in share count and 17.52% in voting rights. The price equals the October 8 close and is a 10.15% discount to the six-month average of ¥335. The company says Epson plans no director appointments.
Where the money goes
The company estimates expenses of ¥3.85mn, leaving ¥296.1mn net. Planned uses:
- ¥178mn for factory rebuilding and equipment to raise capacity for expected higher Epson supply volumes, December 2026 to December 2027.
- ¥59mn for a factory extension and electrical and secure-area works to house visual inspection equipment Epson is to lend, December 2026 to July 2027.
- ¥59mn toward joint development, including inkjet print-head parts and next-generation materials, October 2026 to August 2031.
The filing says details of the plant works are still under consideration. Until spent, the cash will sit in bank deposits. The company has not quantified the effect on results for the year to March 2027.
Epson's side
Epson is already a main customer of Cluster Technology's resin products. Cluster Technology's registration statement describes Epson as planning about ¥5bn of investment over three years in equity stakes and joint development, with its inkjet business named as a growth area. The filing records no guaranteed order volumes.