The sale price of the Swedish "Bergvik Skog" forest property and companies in Latvia, purchased by the Swedish forest sector Södra, the Latvian State Forests (LVM), was too high, said Arvids Ozols, Director of the Forestry Department of the Ministry of Agriculture (ZM).
He said that such funds are not available to LVM, given that the dividend payments to the state budget are not reduced.
"In the end, it was a matter of price offer," said Ozols, commenting why LVM did not own the Bergvik Skog forest property in Latvia.
At the same time, he added that Bergvik Skog forest holdings and companies in Latvia have won one of the leading European forestry companies, which are already operating in Latvia – "Södra", therefore the Ministry of Agriculture is not concerned about the further management of the forest.
LVM's representatives to LETA also acknowledged that Bergvik Skog's sale price of forest property and companies significantly exceeded the price ceiling of LVM's offer. The company confirmed that LVM was the Bergvik Skog among the forest owners and business purchasers and started the purchase offer.
"The final deal price significantly exceeded the price ceilings set by LVM, which was designed taking into account future cash flow and income from socially responsible, environmentally friendly and sustainable forest management, with the aim of raising the value of forest property in the long run. At the same time, no price offer was foreseen. activities related to the resale of forest properties. It should be borne in mind that the future conditions for forest management also depend on the price offer, "LVM pointed out.
LVM congratulated Bergvik Skog and Södra on the successful transaction. "The Latvian forest sector is currently seeing a genuinely experienced and responsible forest owner entering the list of Latvian forest owners," said LVM.
The agency LETA already reported that Sweden's Bergvik Skog sold its forest properties and companies on Tuesday in Sweden to the Swedish forestry concern Södra and handed over its business – Bergvik Skog and Ruda – to Latvia with all employees under the responsibility of Södra . Thus, Bergvik Skog sold 111 100 hectares of land, of which 80,300 hectares is a productive forest land. The transaction amounted to EUR 324 million.
The newspaper Latvijas Avīze previously reported that interest in the acquisition of Latvian forests belonging to the Swedish "Bergvik Skog" has been proven by 20 companies, including three companies from Latvia. The land was planned to be sold by the end of this year.
Previously, it was mentioned that "Latvian State Forests" were interested in the acquisition of property.
Information "Firmas.lv" shows that in 2017 "Bergvik Skog" turnover was 2,423 million euros, but the company earned 275,931 euros.
The company is registered in 2003 and its share capital is 106,025 million euros. The company is owned by the Swedish company Bergvik Skog.
Swedish "Södra" in Latvia has a subsidiary "Sorda meži". Sodra website says that the company has been investing in forests for a long time in the Baltic States and since 2006 it owns a forest in Latvia.