Stora Enso will divest 12.4% of Swedish forest holdings—representing about 125,000 hectares of forest area—in a deal worth 900 million euros (or US $1.02 billion).
Under the terms of the deal, Stora Enso will enter into a new 15-year wood supply agreement (with an option for a 15-year extension) with the buyer, a newly started company co-owned by Soya Group, the parent company of Wallenius shipping lines (40.6 percent), and a consortium led by MEAG, the asset manager for the German insurance company Munich Re (44.4 percent). Stora Enso will retain a 15-per-cent ownership.
The divestiture—announced in October and updated in February as part of a plan to strengthen its balance sheet and reduce its debt—will improve Stora Enso’s adjusted EBITDA by 25 million euros every year and its debt position by 790 million euros:
“We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability. By strategically monetising a “portion of our forest assets while retaining full access to wood supply, we are taking a proactive step to reduce our debt,” according to Stora Enso’s President and CEO Hans Sohlström. “This transaction not only enhances our financial flexibility but also allows us to capitalise on the value of our forest assets. We look forward to building a strong partnership and a successful collaboration with the new owners.”
- For more information about the acquisition, click here for Stora Enso’s media release.
