Stora Enso divests non-core forest holdings in southern Sweden

Part of forest land optimization initiative

0
43
Stora Enso
Stora Enso divests non-core forest holdings in southern Sweden

As part of its forest land optimization, Stora Enso has signed an agreement to divest forest assets located in southern Sweden to the forestry fund Silvestica Green Forest AB. The total area of forest land in the transaction is approximately 5,200 hectares. The selling price is approximately SEK 940 million (approximately Rs 840 crore).

The transaction is in line with Stora Enso’s policy of divesting non-core assets. The forest areas are located geographically far away from Stora Enso’s other forest lands, which limits the scale benefits. The forest land divestment has no impact on Stora Enso’s nearby Hylte Mill, which uses other wood supply sources for its production. The forest land corresponds to less than 0.5% of Stora Enso’s total forest land area in Sweden.

The cash consideration for the divestment is EUR 90 million (approximately Rs 840 crore). Stora Enso will record a gain of approximately EUR 70 million (approximately Rs 631 crore), based on the assets’ historical cost, in the Forest division’s operational EBIT (earnings before interest and taxes) for the first quarter of 2021. The gain under IFRS will be approximately EUR 30 million (approximately Rs 270 crore), based on the estimated IFRS (International Financial Reporting Standards) book value at the disposal date.

The transaction is expected to be closed during the first quarter of 2021.

As you join us today from India and elsewhere, we have a favour to ask. Through these times of ambiguity and challenge, the packaging industry in India and in most parts of the world has been fortunate. We are now read in more than 90 countries as our coverage widens and increases in impact. Our traffic as per analytics more than doubled in 2020 and many readers chose to support us financially even when advertising fell to pieces.

As we come out of the pandemic in the next few months, we hope to again expand our geography and evolve our high-impact reporting and authoritative and technical information, with some of the best correspondents in the industry. If there were ever a time to support us, it is now. You can power Packaging South Asia’s balanced industry journalism and help to sustain us by subscribing.

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here