Stora Enso, a provider of renewable products in packaging, biomaterial and timber construction, has concluded an agreement to sell about 175,000 hectares of forest land, which corresponds to 12.4% of its total forest land in Sweden for a company value of 900 million euros, equivalent Tok.
The SOJA Group will have a share of 40.6% in the newly founded company, and a consortium led by MEG will hold 44.4% of the shares. MEAG is the asset manager of Munich Re, a German insurance company. Stora Enso retains 15% of the company.
Stora Enso and the company sold will conclude a 15-year-old wooden contract agreement with a possible additional extension of 15 years. This will secure the availability of wood for the Swedish business units of Stora Enso. The new company will also benefit from a forest management agreement, according to which Stora enso will offer forest services. Due to the disposal, the adjusted EBITDA will probably decrease by around 25 million euros per year, of which 15 million euros are based on the figures of the year 2024.
The company value of 900 million euros corresponds to the at the time value of the forest assets sold. The proceeds from the sale are expected to reduce the net debt of Stora Enso for 790 million euros.
“We are still obliged to build up a greater storage. This transaction further strengthens our financial stability. By strategically monetizing part of our forest wealth and at the same time maintaining full access to wood care, we take a proactive step to reduce our debts. This transaction not only improves our financial flexibility, but also enables us to build inherent advertising. Sohlström.
The transaction is subject to the competent competition authorities and is expected to be completed in the third quarter of 2025. Stora Enso announced the sale plan in October 2024.