Skogsfond Baltikum AB (publ) has signed a binding agreement to sell all its Lithuanian forest assets, amounting to 1,077 hectares of forest and land. This represents 12% of the company's total holdings of 9,157 hectares. The buyer, Livland Skog 3 AB, is a newly formed company owned primarily by shareholders of Livland Skog AB, the second-largest shareholder in Skogsfond Baltikum, though not directly affiliated with it. The deal, valued at Euro 2.9 million, also involves the transfer of internal loans totaling Euro 1.3 million. This valuation is based on an underlying property value of Euro 5.6 million, equivalent to Euro 5,190 per hectare or Euro 33 per cubic meter of standing forest, as of September 30, 2024, according to Skogsfond Baltikum's assessment.
The sale aligns with the company’s strategy to consolidate and sell its forest portfolio by 2026 to generate a 7–9% average annual return for investors. With prior agreements for Latvian assets already in place, this transaction marks the divestiture of all its holdings. Finalization is subject to shareholder approval at an extraordinary general meeting scheduled for December 11, 2024, with completion expected within three days of approval.
As Lesprom Network reported earlier, IKEA Forestry Investment AB, a division of Inter IKEA Group, has signed a binding agreement to acquire 8,080 hectares of forest and land in Latvia from Skogsfond Baltikum AB (publ). The transaction, valued at Euro 38.35 million, represents all of Skogsfond Baltikum’s Latvian forest assets, accounting for 88% of the company’s total land holdings of 9,157 hectares.
