Nippon Paper Industries has priced the sale of a large stake in Lintec, agreeing to sell its underwritten block of 12,436,600 shares in the Tokyo-listed company for a combined ¥63.6bn, at an underwriting price of ¥5,115 a share. Buyers pay a sale price of ¥5,335 apiece, a 3% discount to the ¥5,500 closing price used as the September 1 pricing reference, with an over-allotment tranche of up to 1,865,400 shares available on top.
A meaningful slice of that block is heading abroad. Of the underwriters' 12,436,600-share tranche, 5,005,800 shares, worth ¥26.7bn at the ¥5,335 sale price, are earmarked for investors in Europe and Asia, explicitly excluding the United States and Canada. Delivery on that overseas portion is set for September 8.
| Component | Shares | Price per share | Total value |
|---|---|---|---|
| Underwriters' firm-commitment tranche | 12,436,600 | ¥5,335 sale / ¥5,115 underwriting | ¥66.3bn sale / ¥63.6bn underwriting |
| Overseas allocation (subset of tranche) | 5,005,800 | ¥5,335 | ¥26.7bn |
| Over-allotment (greenshoe, pending exercise) | up to 1,865,400 | ¥5,335 | up to ¥9.95bn |
| Lintec treasury buyback (Aug 24, separate deal) | 5,464,400 | ToSTNeT-3 off-auction | ¥30.0bn |
The offering changed size midstream because Lintec itself bought back stock. On August 24, Lintec repurchased 5,464,400 of its own shares for about ¥30bn through an off-auction ToSTNeT-3 trade on the Tokyo Stock Exchange. Nippon Paper sold 5,357,800 shares directly into that buyback, a transaction separate from the underwritten sale, and that disposal is what reduced the total share count later placed with underwriters.
The sale traces back to an August 20 board resolution at Lintec approving the underwritten offering. The overseas tranche is capped by rule at no more than half of the combined underwriters' and over-allotment totals, and its price follows an industry-mandated formula: 90 to 100% of Lintec's closing share price on the day terms are set.
The numbers add up to a sizable one-off for Nippon Paper's books. For the year ending March 2027, the company expects to record about ¥56.4bn in gains on sale of affiliate shares in its unconsolidated accounts and about ¥23.9bn in gains on investment-securities sales on a consolidated basis, tied to the overall sale. Of those totals, ¥26.3bn (individual) and ¥12.3bn (consolidated) had already arisen from the August 24 sale into Lintec's buyback, before the underwritten portion was even priced. The estimates still exclude any gain on the 1,865,400-share over-allotment tranche, an option held by lead underwriter Mizuho Securities that has yet to be exercised; Nippon Paper says it will disclose final figures once that greenshoe is settled.
The mechanics are worth sitting with. This is a sale of existing shares, not new equity issued by Lintec, so none of the proceeds go toward Lintec's own balance sheet; the cash benefits Nippon Paper as the selling shareholder. The application period for the underwritten offering runs September 2 to 3, with settlement on September 8 for both the domestic and overseas tranches, and a syndicate cover-trading window runs through September 28.