BillerudKorsnäs
has entered into an agreement with all shareholders of Bergvik Skog AB
concerning a split of Bergvik Skog
AB’s forest assets. The agreement
implies that BillerudKorsnäs acquires Bergvik Skog Öst AB, which comprises
approximately 350,000
hectares of forest land in Sweden, and in connection to that
divests 5% of the shares in Bergvik Skog Väst AB to Stora Enso. All conditions for the transactions have now been fulfilled and the
transactions have been completed on May, 31.
The purchase price for Bergvik Skog Öst AB amounts to approximately SEK 6.4
billion on a debt free basis and after reduction of deferred tax, corresponding
to approximately SEK 18,000 per hectar of forestland. The net cash effect after
the acquisition of Bergvik Skog Öst AB and the transfer of 5% of the shares in
Bergvik Skog Väst AB, amounts to SEK 5.4 billion, which is entirely financed by
bank loans.
“The repurchase of Bergvik Skog Öst is part of our strategy to ensure a
long-term competitive and stable wood supply. Going forward our intent is to
find suitable investors to this forest land and thereby ensure long-term wood
agreements, rather than tying our capital into forest assets. The process to
find suitable investors is ongoing,” says Petra Einarsson, CEO and President at
BillerudKorsnäs.
Bergvik Skog Öst will be consolidated into BillerudKorsnäs’ accounts as of May 31,
2019 and is expected to have a marginal impact on earnings.
BillerudKorsnäs has entered into an agreement with all shareholders of Bergvik Skog AB concerning a split of Bergvik Skog AB’s forest assets. The agreement implies that BillerudKorsnäs acquires Bergvik Skog Öst AB, which comprises approximately 350,000 hectares of forest land in Sweden, and in connection to that divests 5% of the shares in Bergvik Skog Väst AB to Stora Enso.
