Swedish state-owned forestry company Sveaskog has announced that its takeover offer for all of the shares in AssiDomn has been accepted by its shareholders, which hold more than 95% of the shares.

Sveaskogs offer amounts to 18 (SEK280) per share, and in light of the acceptance, all members of AssiDomns board who were elected by general meeting have tendered their resignation, and have called an EGM for 14 January 2002 to elect a new board.

President and chief executive Gunnar Palme will resign from his office with effect from 28 December, with Sveaksog president Lars Skld replacing him.

The move will see the employees and operational units of AssiDomn absorbed into Sveaskog.

AssiDomns assets include 2.4m hectares of productive forest, a sawmill, and the Frvi cartonboard mill. It has 2,200 staff and sales of 1.6bn.

Sveaskog has said that its prime interest is in the firms forestry operations. AssiDomn will apply to the Swedish Stock Exchange for de-listing of its shares with effect from 28 January 2002.

Story by Andy Scott