Stora Enso Sells 12.4% of Its Swedish Forest Holdings

On Wednesday, Stora Enso announced that it has entered into an agreement to divest approximately 175,000 hectares (432,000 acres) of forest land, equivalent to 12.4% of its total forest land holdings in Sweden, for an enterprise value of EUR 900 million (US$1.01 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, Stora Enso’s adjusted EBITDA is expected to decrease by approximately EUR 25 million (US$28.21 million) per year, of which EUR 15 million (US$16.93 million) is cash-related, based on full-year 2024 numbers.

The transaction is subject to clearance by the relevant competition authorities and is expected to be completed in Q3. Stora Enso first announced the divestment plan in October 2024.