UPDATE 1-Toray to raise up to $1.2 bln via share sales

* Most of proceeds used to repay debt from battery venture

* Some of remainder to boost carbon fibre output

* Nomura Securities to lead manage offering

(Adds detail)

TOKYO, May 24 (BestGrowthStock) – Japan’s Toray Industries (3402.T: )
said on Monday it would raise as much as 109.5 billion yen ($1.22
billion) from the sale of new and existing shares to help it meet
growing demand for new technologies such as lithium ion batteries
and carbon fibre.

The textile company will use 59 billion yen from the sale to
repay debt it incurred recently as part of joint venture with
Japan’s TonenGeneral Sekiyu (5012.T: ) to make film for lithium ion
batteries, Toray said in a statement.

The rest will finance capital spending through March 2013,
including expanding the firm’s capacity to produce carbon fibre
in Japan and the United States, as well as boosting its
production of textiles and other materials in China, it said.

Toray won a 15-year contract earlier this month with Airbus
parent EADS NV (EAD.PA: ) to supply carbon fibre materials for the
European manufacturer’s aircraft. In April, it agreed with German
carmaker Daimler AG (DAIGn.DE: ) to jointly develop carbon fibre
car parts. [ID:nTOE64A02D]

After the share offerings in June, the outstanding number of
Toray’s shares will increase by as much as 16 percent to 1.631
billion.

Nomura Securities, the main unit of Nomura Holdings (8604.T: ),
will lead-manage the sales, Toray said.

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(Reporting by Yumiko Nishitani; Editing by Joseph Radford)

UPDATE 1-Toray to raise up to $1.2 bln via share sales