Stora Enso initiates a strategic review of its Swedish forest assets (Inside information)

Rhea-AI Summary

Stora Enso (SEOAY) has initiated a strategic review of its Swedish forest assets, considering a potential separation and public listing through a partial demerger. The company recently sold 175,000 hectares of Swedish forestland for EUR 900 million and still owns over 1.2 million hectares valued at EUR 5.8 billion. The strategic move aims to create two independent entities: one focused on renewable packaging and another emerging as Europe's largest listed pure forest company. The review aligns with Stora Enso's strategy to enhance business focus, reduce complexity, and maximize shareholder value. The company plans to provide an update on the strategic review by the end of 2025.

Positive

• Potential creation of Europe's largest listed pure forest company through demerger
• Company retains 1.2 million hectares of Swedish forest assets valued at EUR 5.8 billion
• Recent successful sale of 175,000 hectares for EUR 900 million at book value
• Strategic move could unlock additional shareholder value and improve operational focus

Negative

• Process subject to complex legal procedures and co-determination negotiations
• Potential disruption to existing wood supply chain integration
• Extended timeline with update not expected until end of 2025

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STORA ENSO OYJ INSIDE INFORMATION 18 June 2025 at 19:00 EEST

HELSINKI, Finland, June 18, 2025 /PRNewswire/ -- As part of its stronger focus on renewable packaging, Stora Enso is initiating a strategic review of its Swedish forest assets. The review includes assessing a potential separation and public listing of the forest assets through a partial demerger. The initiative aims to further increase business focus, streamline operations, and fully unlock the value of both the forest assets and Stora Enso's core packaging business.

As part of this review, Stora Enso will explore various options, including a potential separation and listing of the forest business through a partial demerger into a new company that would be wholly owned by all Stora Enso shareholders. This move aims to establish two robust and independent entities, each with heightened focus and strategic agility. Stora Enso would continue to lead in renewable packaging, with strong market positions and more flexible, integrated, and cost-competitive production. Meanwhile, the Swedish forest business would emerge as Europe's largest listed pure forest company, owning a unique class of assets with anticipated long-term value appreciation and potential for significant new revenue streams.

Following the recent agreement to divest approximately 175,000 hectares of Swedish forestland for an enterprise value of EUR 900 million, in line with book value, Stora Enso retains ownership of over 1.2 million hectares (1.0 million hectares of productive forestland) in Sweden, with a fair value of approximately EUR 5.8 billion as of 31 March 2025. While these assets are integral to Stora Enso's wood supply chain, they possess a distinct operational, financial, and strategic profile.

"Our Swedish forest assets exemplify excellence in sustainable forestry operations and environmental stewardship," stated Hans Sohlström, President and CEO of Stora Enso. "Initiating this strategic review underscores our commitment to maximising shareholder value while ensuring alignment with our long-term strategic objectives. By evaluating various strategic options, we aim to enhance business focus, reduce complexity, and unlock the full potential of both our forest and industrial assets."

Stora Enso plans to provide an update on the strategic review by the end of 2025. All changes are subject to co-determination negotiations and other potential legal procedures in all impacted countries.

Webcast on Thursday 19 June 2025
Stora Enso will organise a webcast regarding the strategic review on Thursday 19 June at 11.00 EEST / 10.00 CEST. The webcast will be held in English, and it can be accessed at https://stora-enso-call-june-2025.open-exchange.net/. More information is available on storaenso.com/investors.

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

CONTACT:

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

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

 

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https://news.cision.com/stora-enso-oyj/r/stora-enso-initiates-a-strategic-review-of-its-swedish-forest-assets--inside-information-,c4166325

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SOURCE Stora Enso Oyj

FAQ

What is Stora Enso's (SEOAY) plan for its Swedish forest assets?

Stora Enso is conducting a strategic review of its Swedish forest assets, considering options including a potential separation and public listing through a partial demerger

How much Swedish forest land does Stora Enso currently own?

Stora Enso owns over 1.2 million hectares in Sweden (1.0 million hectares of productive forestland), valued at approximately EUR 5.8 billion as of March 31, 2025

What is the value of Stora Enso's recent forest land sale in Sweden?

Stora Enso recently agreed to sell approximately 175,000 hectares of Swedish forestland for an enterprise value of EUR 900 million

When will Stora Enso announce the results of its strategic forest assets review?

Stora Enso plans to provide an update on the strategic review by the end of 2025

What are the potential benefits of Stora Enso's forest assets demerger?

The demerger could create two focused entities: a renewable packaging company and Europe's largest listed pure forest company, potentially unlocking greater shareholder value and improving operational efficiency