TOKYO, Mar 19 (Pulse News Wire) – Hokuetsu Corporation (3865.T) completed its tender offer to sell shares in Daio Paper Co., Ltd. on March 19.
As a result, Hokuetsu's stake in Daio Paper will drop below the threshold for accounting consolidation, effective as of March 24. Under the strategic business partnership deepening agreement announced on March 18, Hokuetsu and Daio Paper agreed to establish an equal capital relationship. To achieve this while considering various factors such as capital policy and potential impact on stock prices, Hokuetsu decided to tender all 11 million shares held in Daio Paper, valued at ¥12.33 billion. Post-sale, Hokuetsu will own 30,589,008 shares of Daio Paper, reducing its voting rights ratio from 24.83% to 19.70%.
Daio Paper reported consolidated net assets of ¥249.7 billion as of the fiscal year ending March 2025. Over the past three years, Daio Paper’s revenue stood at ¥646.2 billion in 2023, ¥671.7 billion in 2024, and ¥668.9 billion in 2025. Operating profit was --¥21.44 billion in 2023, ¥14.37 billion in 2024, and ¥9.807 billion in 2025. Looking ahead, Hokuetsu expects a loss from the sale of related company shares in the fiscal year ending March 2026.
Any significant impact on the group's performance will be promptly disclosed.
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