Daio Paper and Hokuetsu Deepen Alliance With Balanced Cross-Shareholdings

Daio Paper Corporation ( (JP:3880) ) has issued an announcement.

Daio Paper and Hokuetsu have signed a new memorandum of understanding to deepen their strategic business alliance by moving toward a more balanced cross-shareholding structure. The companies aim to enhance joint competitiveness and corporate value by broadening cooperative measures in areas such as logistics and raw material procurement while maintaining trust with stakeholders.

As part of the new framework, each company plans to adjust its stake so that mutual voting rights initially approach but remain below 20%, with a medium-term goal of reducing cross-shareholdings to roughly 5%–10% to improve capital efficiency. Daio Paper is expected to cease being an equity-method affiliate of Hokuetsu, and both firms emphasize that the alliance’s governance impact should be limited while enabling deeper operational collaboration.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen1073.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

More about Daio Paper Corporation

Daio Paper Corporation and Hokuetsu Corporation are Japanese paper manufacturers that focus on “monozukuri” manufacturing while working closely with local communities. Both companies produce paper products serving domestic demand that is under pressure from declining usage of printing and communication paper, logistics constraints, and higher raw material and fuel costs, and they are pursuing structural reforms and portfolio transformation to stay competitive.

Average Trading Volume: 394,756

Technical Sentiment Signal: Buy

Current Market Cap: Yen183.1B

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