Finnish group Stora Enso will retain a 15% ownership in the newly formed company while Soya Group will hold a 40.6% share, and a consortium led by MEAG – the asset manager of German insurance company Munich Re – will hold 44.4% of the shares.
In connection with the transaction, Stora Enso and the divested entity will enter into a 15-year wood supply agreement with a possible additional 15-year extension. It said this would secure wood availability for Stora Enso’s Swedish business units.
The new entity will also benefit from a forest management agreement under which Stora Enso will provide forest-related services.
Due to the disposal, Stora Enso’s adjusted EBITDA is expected to decrease by around €25m per year, of which €15m is cash-related, based on full-year 2024 numbers.
Stora Enso said the enterprise value of €900m is in line with the accounting fair value of the divested forest assets. The proceeds from the divestment are expected to reduce Stora Enso’s net debt by €790m.
“We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability,” said Stora Enso president and CEO Hans Sohlström.
“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. This transaction not only enhances our financial flexibility but also allows us to capitalise on the inherent value of our forest assets.
“We look forward to building a strong partnership and a successful collaboration with the new owners.”
The transaction is subject to clearance by the relevant competition authorities and is expected to be completed during the third quarter of 2025. Stora Enso announced its divestment plan in October 2024.
The company’s share price was up 1.17% on yesterday’s close at the time of writing just before lunchtime today, to €9.16 (52-week high: €13.82, low: €7.10).
Stora Enso said last month that it was set to implement a new, leaner and flatter organisational structure with seven P&L responsible business areas to reflect the importance of its core business of renewable packaging in the business portfolio.
