Latest Tokyo Brief coverage on LINTEC Corporation, tracking filings, financial news, and market signals from Japan.
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Nippon Paper's sale of Lintec Corporation shares is expected to add an estimated ¥84.6bn gain to the parent company's own accounts, but only ¥37bn once consolidated with its group results, alongside a ¥3.6bn deferred-tax reversal.
Nippon Paper's voting stake in adhesive-materials maker LINTEC fell from 23.89% to 3.12% after a September 8 secondary offering, and a Mizuho greenshoe running to September 28 could wipe out what remains.
Nippon Paper priced the sale of a large Lintec stake at ¥63.6bn after Lintec's ¥30bn ToSTNeT-3 buyback trimmed the block, and underwriters routed just over five million shares to European and Asian buyers, with settlement due September 8.
Lintec's ¥30bn treasury buyback absorbed ¥29.4bn of Nippon Paper's stake directly, cutting the pending secondary offering to 12.4 million shares and handing Nippon Paper a ¥26.3bn gain ahead of pricing due September 1 to 3.
Lintec approved a ¥30bn share buyback the same day Nippon Paper agreed to sell nearly all its 20 million Lintec shares, a sale that ends Nippon Paper's run as Lintec's top shareholder and equity-method partner.