Stora Enso is considering spinning off its Swedish forest assets into a separately listed company as it sharpens its focus on renewable packaging.
The Finnish-Swedish company said Wednesday it has initiated a strategic review that includes a potential partial demerger of the assets.
The forest business, which holds over 1.2 million hectares in Sweden, had a fair value of approximately 5.8 billion euros as of March 31, the company said.
A separation would create Europe’s largest listed pure-play forest company, while allowing Stora Enso to concentrate on its core packaging operations, according to the company.
“Initiating this strategic review underscores our commitment to maximising shareholder value while ensuring alignment with our long-term strategic objectives,” stated Hans Sohlström, President and CEO of Stora Enso.
He added that the aim is to “enhance business focus, reduce complexity, and unlock the full potential of both our forest and industrial assets.”
The move follows a major restructuring in 2004 when the company transferred its Swedish forestlands to a new entity, Bergvik Skog, while retaining a significant minority stake.
Stora Enso said it plans to provide an update on the strategic review by the end of 2025.
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