Daio Paper and Hokuetsu Deepen Alliance With More Balanced Cross-Shareholdings

Hokuetsu Corporation ( (JP:3865) ) has shared an announcement.

Daio Paper Corporation and Hokuetsu Corporation have agreed to deepen their strategic business alliance by signing a new memorandum of understanding that aims to create a more equal capital relationship and expand cooperative initiatives. The move builds on earlier logistics and procurement cost savings, and targets a more robust response to structural challenges such as weakened domestic paper demand, logistics constraints, environmental pressures, and high raw material costs.

To achieve this, the companies will undertake capital transactions that are expected to leave each holding just under 20% of the other’s voting rights, with Daio Paper ceasing to be an equity-method affiliate of Hokuetsu. Over the medium term, both plan to gradually reduce these cross-shareholdings to roughly 5%–10%, seeking improved capital efficiency while maintaining strategic collaboration, with management expecting only limited impact on governance from the new arrangements.

The most recent analyst rating on (JP:3865) stock is a Hold with a Yen1077.00 price target. To see the full list of analyst forecasts on Hokuetsu Corporation stock, see the JP:3865 Stock Forecast page.

More about Hokuetsu Corporation

Hokuetsu Corporation is a Japanese paper manufacturer listed on the Prime Market of the Tokyo Stock Exchange. Alongside Daio Paper Corporation, it focuses on manufacturing-based coexistence with local communities, serving customers, shareholders, business partners, local communities, and employees amid declining domestic paper demand and rising input costs.

Average Trading Volume: 287,233

Technical Sentiment Signal: Buy

Current Market Cap: Yen170.1B

See more data about 3865 stock on TipRanks’ Stock Analysis page.