Nippon Paper Industries said Mizuho Securities, lead underwriter of its Lintec Corporation share offering, exercised its option to buy an additional 415,100 Lintec shares for ¥2.1bn, at ¥5,115 apiece. On its own, that tranche adds an estimated ¥1.9bn gain to Nippon Paper's non-consolidated accounts and ¥0.8bn to its consolidated accounts for the year to March 2027.
The additional sale also closes out a wider disposal. Counting the underwritten offering, this final tranche, and Lintec shares Nippon Paper tendered into Lintec's own August 24 buyback, Nippon Paper has now sold 18,209,500 Lintec shares in total. That cumulative total is expected to produce an estimated ¥84.6bn gain on sale of affiliate shares in Nippon Paper's own, non-consolidated accounts, but only an estimated ¥37bn gain on investment securities once folded into the group's consolidated accounts. The two figures describe the same disposal measured on different accounting bases, and Nippon Paper reported both as estimates.
| Disposal | Estimated Amount | Accounting Basis |
|---|---|---|
| Additional sale (415,100 shares) | ¥1.9bn | Non-consolidated (parent) gain |
| Additional sale (415,100 shares) | ¥0.8bn | Consolidated gain |
| Total disposal (18,209,500 shares) | ¥84.6bn | Non-consolidated (parent) gain |
| Total disposal (18,209,500 shares) | ¥37bn | Consolidated gain |
| Deferred tax liability reversal | ¥3.6bn | Consolidated tax credit |
Because Lintec drops out of Nippon Paper's roster of equity-method affiliates once the sale completes, the company will also reverse a deferred tax liability, adding an estimated ¥3.6bn credit to income tax adjustments in its consolidated accounts for the same fiscal year. Nippon Paper said its full earnings forecast for the year to March 2027, which will fold in all these one-off items, is still under review and will be published once the company has a reasonable estimate.