Stora Enso divests 12.4% of its Swedish forest holdings for an enterprise value of EUR 900 million (Inside information)

Rhea-AI Summary

Stora Enso (SEOAY) has agreed to sell 12.4% of its Swedish forest holdings, approximately 175,000 hectares, for an enterprise value of EUR 900 million. The newly formed company will be owned by Soya Group (40.6%), a MEAG-led consortium (44.4%), and Stora Enso (15%). The transaction includes a 15-year wood supply agreement with a possible 15-year extension, ensuring continued wood availability for Stora Enso's Swedish operations.

The divestment is expected to reduce Stora Enso's net debt by EUR 790 million, though it will decrease the Group's adjusted EBITDA by approximately EUR 25 million annually. The deal, announced in October 2024, is expected to close in Q3 2025, subject to regulatory approvals.

[ "Transaction will reduce net debt by EUR 790 million, strengthening financial stability", "15-year wood supply agreement (with possible 15-year extension) secures continued wood availability", "Enterprise value of EUR 900 million aligns with accounting fair value", "Company retains 15% ownership stake in the new entity" ]

Positive

• None.

Negative

• Group's adjusted EBITDA will decrease by EUR 25 million annually
• Reduction in forest asset ownership and associated revenue streams
• EUR 15 million of the EBITDA decrease is cash-related

News Market Reaction

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-4.01% News Effect

On the day this news was published, SEOAY declined 4.01%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

STORA ENSO OYJ INSIDE INFORMATION 21 May 2025 at 22:45 EEST

HELSINKI, May 21, 2025 /PRNewswire/ -- Stora Enso has entered into an agreement to divest approximately 175,000 hectares of forest land, equivalent to 12.4% of its total forest land holdings in Sweden for an enterprise value of EUR 900 million, equivalent to SEK 9.8 billion.

Soya Group, will hold a 40.6% share in the newly formed company, and a MEAG led consortium will hold 44.4% of the shares. MEAG is the asset manager of Munich Re, a German insurance company. Stora Enso will retain a 15% ownership in the company.

In connection with the transaction, Stora Enso and the divested entity will enter into a 15-year wood supply agreement with a possible additional 15-year extension. This will secure wood availability for Stora Enso's Swedish business units. The new entity will also benefit from a forest management agreement under which Stora Enso will provide forest-related services. Due to the disposal, the Group's adjusted EBITDA is expected to decrease by approximately EUR 25 million per year, of which EUR 15 million is cash-related, based on full-year 2024 numbers.

The enterprise value of EUR 900 million is in line with the accounting fair value of the divested forest assets. The proceeds from the divestment are expected to reduce Stora Enso's net debt by EUR 790 million.

 "We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability. By strategically monetising a portion of our forest assets while retaining full access to wood supply, we are taking a proactive step to reduce our debt. This transaction not only enhances our financial flexibility but also allows us to capitalise on the inherent value of our forest assets. We look forward to building a strong partnership and a successful collaboration with the new owners," says Stora Enso's President and CEO Hans Sohlström.

The transaction is subject to clearance by the relevant competition authorities and is expected to be completed during the third quarter of 2025. Stora Enso announced the divestment plan in October 2024.

For further information, please contact: 
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349 

Investor enquiries:
Jutta Mikkola
VP Investor Relations
tel. +358 50 544 6061

The forest is at the heart of Stora Enso, and we believe that everything made from fossil-based materials today can be made from a tree tomorrow. We are the leading provider of renewable products in packaging, biomaterials, and wooden construction, and one of the largest private forest owners in the world. In 2024, Stora Enso had approximately 19,000 employees, and the Group sales were EUR 9 billion. Stora Enso's shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA OTC Markets (OTCQX) as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com

STORA ENSO OYJ

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SOURCE Stora Enso Oyj

FAQ

How much forest land is Stora Enso (SEOAY) selling in Sweden?

Stora Enso is selling approximately 175,000 hectares of forest land, which represents 12.4% of its total forest holdings in Sweden.

What is the value of Stora Enso's Swedish forest divestment?

The enterprise value of the divestment is EUR 900 million (equivalent to SEK 9.8 billion).

Who are the buyers of Stora Enso's forest assets?

The buyers include Soya Group (40.6% ownership), a MEAG-led consortium (44.4% ownership), while Stora Enso will retain 15% ownership in the new company.

How will the forest sale affect Stora Enso's financial performance?

The sale will reduce net debt by EUR 790 million but decrease annual adjusted EBITDA by EUR 25 million, of which EUR 15 million is cash-related.

What agreements are included in Stora Enso's forest divestment deal?

The deal includes a 15-year wood supply agreement (with possible 15-year extension) and a forest management agreement where Stora Enso will provide forest-related services.