Mets-Serla is negotiating to buy Modo Paper from owners SCA and Holmen. If the deal succeeds SCA will get Mets-Tissue in return for its share while Holmen is most likely to be paid in cash.
Modo Paper was formed last year through a merger of the fine paper businesses of SCA and Holmen. The aim was to eventually list the company but difficult trading conditions within the paper industry have made this an unrealistic prospect.
SCA, Europes largest tissue producer, already has a 20% stake in Mets-Tissue but up until now Mets-Serla had been unwilling to sell its 65% share. If finalised, the deal will promote Mets-Serla into a league with StoraEnso, Europes largest producer of fine paper.
Analysts have valued Modo Paper at around $800m.
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Unencumbered assets that weren't on the Reflections books, I believe.
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