Mitsubishi raises stake in Hokuetsu Paper Mills

08/07/06 - newratings.com

LONDON, August 7 (newratings.com) - Hokuetsu Paper Mills Ltd (HPE), the sixth-largest paper manufacturer in Japan, announced that Mitsubishi has become the company’s largest shareholder.

Hokuetsu Paper Mills said that Mitsubishi has purchased 50 million new shares of the former company for ¥30.4 billion, raising its stake in Hokuetsu Paper Mills to 24.4%. Hokuetsu Paper Mills said that it would utilise the proceeds from the deal to increase its production capacity. Oji Paper had recently launched a hostile takeover offer on Hokuetsu Paper Mills. Nippon Paper has in the meanwhile indicated that it intends to raise its stake in Hokuetsu Paper to 10% to block the hostile bid recently made by Oji Paper.