Daio Paper to End Hokuetsu’s Status as Affiliated Company After Major Share Buyback

The latest announcement is out from Daio Paper Corporation ( (JP:3880) ).

Daio Paper Corporation announced that Hokuetsu Corporation will cease to qualify as its other affiliated company after Daio repurchases 11 million of its own shares previously held by Hokuetsu through an off-auction share buyback. Following settlement on March 24, 2026, Hokuetsu’s voting rights in Daio will fall from 24.83% to 19.71%, ending its status as an equity-method affiliate while the two companies continue existing product transactions.

The change stems from Daio’s large-scale treasury share repurchase, which significantly reduces its outstanding share count and dilutes Hokuetsu’s relative stake without fully unwinding the capital relationship. This shift may alter Daio’s governance dynamics by reducing the influence of a major corporate shareholder, while signaling a stronger emphasis on capital policy and shareholder returns through aggressive buybacks.

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 is a Japanese manufacturer focused on paper and pulp products, operating in segments such as printing paper, packaging, and household paper. Listed on the Prime Market of the Tokyo Stock Exchange under securities code 3880, the company maintains transactional relationships within the domestic paper industry, including with Hokuetsu Corporation as both a business partner and equity-method affiliate.

Average Trading Volume: 394,756

Technical Sentiment Signal: Buy

Current Market Cap: Yen183.1B

Learn more about 3880 stock on TipRanks’ Stock Analysis page.