Swedish Södra acquired 111,100 ha of forest land in Latvia

Swedish Södra acquired 111,100 ha of forest land in Latvia

The Swedish Södra Group has this week acquired forest land from the Swedish Bergvik Skog AB. Bergvik Skog AB is 49.8% owned by Stora Enso.

The forest area covers 111,100 ha, of which 80.3% forest. The purchase price is 324 million euros. Södra already owns 15,000 hectares of forest land in Latvia and intends to secure its supply of roundwood for the future through the acquisition.

The proceeds from the sale amount to € 95 million, of which Stora Enso will receive around € 47 million, corresponding to its stake, which will be recorded as a one-off effect in the fourth quarter.

Stora Enso is currently changing its ownership structure to Bergvik Skog. The previous 49.8% stake in Bergvik Skog AB is to be converted into direct ownership of its subsidiary Bergvik Väst AB in the amount of 70%. Already in November 2017, a Letter of Intend was signed. The goal is to reach a binding agreement in the first half of 2019. Stora Enso does not expect any negative effects on its wood supply.

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