Norske Skog launches a recapitalization transaction that will significantly reduce the group's debt level and interest cost, increase the equity value, and position the company to deliver on its future growth strategy. Following consistent investor feedback, Norske Skog has discussed the transaction proposal with major debt and equity investors, and received general support for a transaction, which sees the unsecured bonds equitised. "After years of managing high debts in declining markets, Norske Skog now has a sustainable business portfolio with very competitive business units. The group generates an acceptable level of cash flow from operations, but too much is consumed by interest payments, leaving little to be reinvested in the existing business. This is a balanced recapitalization proposal that will substantially reduce the group's debt level and interest expenses, enabling the group to invest both in core business and green growth initiatives. The proposal is clearly in the best interest of all stakeholders and only less beneficial alternatives exist," said Mr. Lars P.S. Sperre, President and CEO of Norske Skog. Click Read More below for additional detail.
Holmen has today signed an agreement to sell forest properties in north-west Jämtland, Sweden, for SEK 100 million. The sale is expected to be completed in January 2018. The Group’s earnings will be positively impacted by just over SEK 70 million in the first quarter of 2018 since the sale price exceeds the carrying amount according to IAS 41.
With holdings of over 1 million hectares of productive forest land, Holmen is one of Sweden’s largest forest owners.
“This forest land is located far from our production facilities and has significant other values than forestry. We intend to reinvest the sales proceeds in forest located closer to our own production facilities,” says Henrik Sjölund, President and CEO of Holmen.
The buyer is Persson Invest, a Group with a turnover of 5.5 billion SEK that already owns 100,000 hectares of forest land in Jämtland County.
“We are pleased to expand our forest resources in the county. It is rare that real estate of this size comes into the market,” says Henrik Mårtensson, Director of Forestry, Persson Invest.
The properties comprise 4 400 hectares of productive forest land, 2 000 hectares of which are actively managed.