Hokuetsu Corporation
(Progress of Disclosure Items) Notice on the Deepening of Strategic Business Alliance Between Daio Paper Corporation and Hokuetsu Corporation
Daio Paper and Hokuetsu Corporation adjusted their mutual voting rights ratios to below 20%, deepening their strategic business alliance. They indicated a medium-term plan to reduce the ratio further to around 5–10% (2026-03-18).
Key Figures
- Operating Income Increase Target: Approximately 5 billion yen
- Hokuetsu Corporation's Voting Rights Ratio in Daio Paper (Current): 24.8%
- Daio Paper's Voting Rights Ratio in Hokuetsu Corporation (Current): 1.4%
AI要約
Deepening of Strategic Business Alliance
Daio Paper Corporation and Hokuetsu Corporation, based on the strategic business alliance basic agreement concluded on May 15, 2024, have aimed for a combined operating income increase of approximately 5 billion yen in fiscal year 2026. This time, the two companies have signed a memorandum concerning their strategic business alliance to establish an equal capital relationship and expand the scope of specific alliance measures to further enhance corporate value.
Review of Capital Relationship and Future Policy
Currently, Hokuetsu Corporation’s voting rights ratio in Daio Paper stands at 24.8%, while Daio Paper’s voting rights ratio in Hokuetsu Corporation is 1.4%, which did not constitute an equal capital relationship. Through this transaction, the mutual voting rights ratio of both companies will fall below 20%, and Daio Paper is expected to be removed from the category of equity-method affiliates with respect to Hokuetsu Corporation. In the medium term, considering capital efficiency, they plan to reduce the voting rights ratio to around 5–10%, with specific methods and timing to be decided through future discussions.
