HELSINKI (dpa-AFX) - Stora Enso Oyj (STERV.HE), a provider of renewable products in packaging, biomaterials and wood construction, said Friday that its Board has approved a plan to spin off its Swedish forest assets business into a separate listed company, Bergslagets Skogar AB, allowing it to focus more closely on its core businesses.
The Swedish forest assets business, include forest land, forestry operations, paint and colour pigment production, and renewable energy projects. Bergslagets Skogar plans to list on Nasdaq Stockholm and Nasdaq Helsinki.
Under the proposed terms, Stora Enso shareholders will receive one share in Bergslagets Skogar for each share they hold in Stora Enso, while retaining their existing shares.
The demerger is subject to shareholder approval at an extraordinary general meeting scheduled for December 15, 2026, with completion planned for March 31, 2027. Stora Enso said its five largest shareholders by voting rights, representing about 28.6% of shares and 69.9% of votes, have committed to support the proposal.
Bergslagets Skogar aims to grow its net standing stock volume by an average of 1% annually and achieve a long-term free cash flow return of 2%. It plans to distribute 80% to 100% of adjusted net income as ordinary dividends.
To support the new company, Stora Enso has secured up to SEK 9.5 billion in term loan facilities from Nordic lenders. Bergslagets Skogar is expected to have net debt of about SEK 9.1 billion shortly after the demerger.
Following the separation, Stora Enso's IFRS operating profit is expected to decline by an amount largely corresponding to Bergslagets Skogar's operating profit of SEK 5.210 billion. Excluding the forest assets business, Stora Enso's adjusted EBIT for the 12 months ended September 30, 2026, would have been approximately €400 million.
The demerger is expected to reduce Stora Enso's net debt by about €800 million, with no material impact on reported sales.
In Helsinki, Stora Enso shares were down 0.08% at €9.75.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
