Skogsfond Baltikums Sells All 9,000 Hectares of Its Baltic Forests in 2024

Skogsfond Baltikum AB reported that it completed the previously announced sales of the company’s three forest-owning subsidiaries in Latvia and Lithuania on December 13 and 16, 2024.

The sales were made for a total purchase price of approximately EUR 44 million on a cash and debt-free basis, and deductions have been made for external loans from SEB in Latvia and Lithuania for a total value of approximately EUR 12 million. The company’s net cash as of December amounts to approximately EUR 32 million (before future adjustment of the purchase price for the sale in Latvia and the transaction and settlement costs that remain to be paid by the company).

In its year-end report, Skogsfond Baltikum said the forests and lands sold totaled about 9,000 hectares (22,000 acres):

“Since 2019, approximately 1,000 investors have subscribed for Class A shares and contributed approximately SEK 188 million to the Company at an average of SEK 1,042 per Class A share. With these cash and cash equivalents, combined with bank financing, we have acquired 9,157 hectares of carefully selected forest and land in the Baltic States at an average price of approximately EUR 2,500 per hectare. The growth conditions have been improved through extensive planting and clearing measures that have greatly increased growth and value. Through increased photosynthesis, the Baltic Forest Fund’s previously owned forests will contribute to climate benefits in the coming decades, approximately 5,000 tonnes of extra carbon dioxide will be stored each year as a direct result of completed afforestation.”