Stora Enso to demerge forest assets, creating Europe's largest pure-play
Stora Enso plans to spin off its Swedish forest assets into a new, separately listed company, a move it said will create 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, according to a company statement on Friday.
The separation, which follows a strategic review announced in June, is expected to be completed in the first half of 2027 and will allow Stora Enso to focus on its core renewable packaging business.
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 Board’s decision to move forward with the demerger marks a milestone in the creation of the largest listed pure play forest company in Europe," said Kari Jordan, Chair of Stora Enso’s Board of Directors.
He added that the separation will "unlock value potential and focus of both the forest assets and industrial operations, enabling accelerated growth across each business."
The company appointed Tuomas Hallenberg, currently Executive Vice President of its Forest business area, to lead the new forest business as President and CEO.
Stora Enso also said it intends to enter into an 18-year wood supply agreement with the new firm.
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