Norvik hf Moves Closer to Completing the Purchase of Berg Timber AB

Norvik hf took a major step forward in the purchase of Berg Timber AB on November 29th when Norvik shareholders approved the SEK1.54 billion ($143.50 million USD) public takeover offer of Berg Timber, according to Timber Trades Journal (12-4-23).

Norvik is currently the largest shareholder in Berg Timber, holding shares corresponding to approximately 58.67% of the shares and votes in the company.

Berg shareholders will have their opportunity to approve the sale on December 27th in Stockholm during an extraordinary meeting. The price per share of the offer represents a premium of 86.2% compared to the closing price of SEK23.90 for Berg Timber B-shares on the Nasdaq Stockholm Exchange on October 26th.

Bergs operates in Sweden, Latvia, Poland, and the UK, with sales made to about 30 countries. The largest markets are Scandinavia, the Baltics, the UK, and France. Operations include door and window production, furniture and components, wood solutions, sawn timber (35% of turnover), and energy and logistics. Its sawmill operations are in Latvia and Estonia, though the latter was closed in the autumn. Bergs has UK operations in its doors and windows business unit, plus its wood solutions division.

In an earlier statement cited by Timber Trades Journal, Norvik said:

“Considering the current market conditions, and given Norvik’s current knowledge of Berg, Norvik does not intend to implement any changes regarding the company’s business or its management and employees, including their terms of employment, or regarding occupation and the locations where Bergs conducts its operations. Nor does Norvik currently have any strategic plans for Bergs which may have an impact on employment or the locations where the Company conducts its operations.”