Forest company Bergvik Forest, which holds 49.8 percent Stora Enso, has sold its ownership rights to subsidiaries in Latvia, where the company owned 0.1 million hectares of forest land to the south. Södra already has 15,000 hectares of forest land in Latvia.
"Using this investment, we provide some of our wood raw material needs. We get a better structure for timber imports, which adds to our members' timber supply and strengthens Södra's competitiveness," said Lars Idermark, President and CEO of Södra.
The area of 1,000 square kilometers makes up 1.5 percent of Latvia's surface and is comparable to Ewald 1342 square kilometers.
The sale price was EUR 324 million which stands at around 3.3 billion crowns, Stora Enso says in a press release.
Earnings per transaction costs and taxes were approximately SEK 978 million.
Bergvik Skog is owned by Stora Enso from Länsförsäkringar and Wallenbergstiftelsen from FAM, each with 15 percent. In addition, there are others Billerud Korsnäs list of owners with 5 percent share.
Delivery Latvian assets are part of a restructuring plan agreed upon by shareholders. The negotiations will continue in line with the declaration of intent signed in November 2017, it seems.
The purpose of the negotiations is to reach a binding agreement that will allow most of the restructuring to be completed in the first half of 2019. There was no expected negative impact on the availability of forest raw materials in 2019, writes Stora Enso.