In Sweden, global forest industry major Stora Enso Oyj has announced that it has signed a binding with the shareholders of Bergvik Skog AB, a Swedish forest holding company, regarding the previously announced intent to restructure its ownership. With this agreement, the parties aim to complete the transaction during the first half of 2019.
As a result of the agreement, Stora Enso’s forest holdings in Sweden will increase to 1.4 million hectares, of which 1.15 million hectares is productive forest land. The total value of the transaction in Stora Enso’s balance sheet is estimated to be approximately EUR 1.0 billion.
I am pleased that we have taken a step forward in this ownership restructuring along with the other shareholders in Bergvik Skog. This transaction is a natural next step for us, as we strongly believe in the bioeconomy and want to secure our competitive raw material supply for the long term. With direct ownership, we will have better visibility of our wood supply in Sweden. This will give us better opportunities to further develop sustainable forest management, thus strengthening our competitiveness, said Karl-Henrik Sundström, CEO of Stora Enso.
Currently, Bergvik Skog’s Swedish forest assets are owned by its subsidiaries Bergvik Väst AB and Bergvik Öst AB, representing approximately 83 percent and 17 percent of these assets respectively.
As a result of the deal, Stora Enso will transform its current ownership of 49.8 percent in Bergvik Skog, to a direct holding of 69.8 percent of the value of the forest assets in Bergvik Väst. The transaction is expected to finalised during the first half of 2019.
On November 13, the Swedish forest owners association Södra announced that it was acquiring Bergviks Skog forest assets in Latvia.
