#Finland #Helsinki #Stora Enso #Soya Group #MEAG

Stora Enso's Strategic Divestment of Forest Holdings

Stora Enso, a leading provider of renewable products in packaging and forestry, has announced the divestment of approximately 175,000 hectares of its forest land in Sweden, which represents 12.4% of its total holdings in the country. This enterprise value for this transaction is set at EUR 900 million, equivalent to roughly SEK 9.8 billion. The transaction is a pivotal step for Stora Enso, emphasizing its commitment to maintaining financial stability and operational flexibility in an evolving market landscape.

Details of the Divestment

The newly formed entity from this transaction will see Soya Group holding 40.6% of the shares, while a consortium led by MEAG, the asset manager for Munich Re, will own 44.4%. Stora Enso will retain a 15% stake in this new company, thereby assuring continued involvement in its operations and future growth.

Significantly, alongside the divestment, a 15-year wood supply agreement has been established, with an option for an additional 15-year extension. This agreement is designed to ensure a steady supply of wood for Stora Enso’s Swedish business units, proving vital for their continuity and operations. Additionally, the new entity will benefit from a forest management agreement through which Stora Enso will furnish forest-related services, securing a strong operational tie with the new owners.

Financial Implications

The divestment is projected to lead to an annual decline of approximately EUR 25 million in Stora Enso's adjusted EBITDA, with EUR 15 million of that amount being cash-related. However, it is anticipated that the transaction proceeds will significantly aid in reducing Stora Enso's net debt by EUR 790 million, enhancing their capacity for future investments and stability.

Stora Enso's President and CEO, Hans Sohlström, expressed confidence in this strategic move, stating, “We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability. By strategically monetizing a portion of our forest assets while retaining full access to wood supply, we are taking a proactive step to reduce our debt.” This illustrates the company's dual focus on financial retraction alongside safeguarding its core wood supply, crucial for their operational model.

Conclusion and Future Outlook

The divestment is pending approval from relevant regulatory authorities and is expected to conclude during the third quarter of 2025. This strategic decision highlights Stora Enso's ongoing commitment to leverage its asset base effectively while ensuring operational adequate footholds necessary for its Swedish units.

With this transaction, Stora Enso is positioned to capitalize on its forest assets' inherent value, encouraging a sustainable approach to resource management while enhancing its market standing. As the firm continues to innovate within the realm of renewable products, this operational reinvention stands to place it in a notable position within the forestry market.

For additional inquiries about this major divestment, Carl Norell, Senior Vice President of Corporate Communications, can be reached at +46 72 241 0349, or for investor-related questions, Jutta Mikkola, Vice President of Investor Relations, at +358 50 544 6061.

Stora Enso, as one of the largest private forest owners globally, emphasizes its belief that everything produced from fossil-based materials today can potentially come from trees tomorrow. The company had approximately 19,000 employees and generated sales of EUR 9 billion in 2024, showcasing its substantial market influence throughout the forestry and packaging sectors.