Stora Enso plans to spin off its Swedish forest assets into a new, publicly listed company, creating what it says will be Europe's largest publicly traded firm focused solely on forestry.
The new company will hold over 1.2 million hectares of forest land in Sweden with a fair value of approximately 5.7 billion euros, Stora Enso said Friday.
The move concludes a strategic review the Finnish-Swedish packaging company began in June to unlock shareholder value and sharpen its focus on renewable materials and packaging.
"The separation and public listing of Stora Enso’s Swedish forest assets business will unlock value potential and focus of both the forest assets and industrial operations, enabling accelerated growth across each business,” said Kari Jordan, Chair of Stora Enso’s Board of Directors.
Under the plan, current Stora Enso shareholders will receive shares in the new entity, which is intended to be listed on the Nasdaq exchanges in Stockholm and Helsinki.
The two companies will maintain a strategic relationship through a long-term wood supply agreement, according to the company.
The separation, which requires shareholder and regulatory approval, is expected to be completed in the first half of 2027.
Tuomas Hallenberg, currently an executive vice president at the company, has been appointed President and CEO of the new forest business.
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