Stora Enso’s forest associate Bergvik Skog sells forestland in Latvia and increases fair values of biological assets
Bergvik Skog AB, a Swedish forest holding company, has divested its ownership in its subsidiaries in Latvia where the company owned a total of 0.1 million hectares of forest land. Stora Enso owns currently 49.8% of Bergvik Skog. The transaction was finalised today, 13 November 2018. The selling price of the assets was EUR 324 million, and the gain on disposal net of transaction costs and taxes totalled approximately SEK 978 (EUR 95) million. Stora Enso’s share of the gain is approximately SEK 487 (EUR 47) million, subject to normal closing verification and currency movements. The gain will be booked as an item affecting comparability (IAC) in the fourth quarter 2018 results. The total area in the Latvian forest is 111 000 ha, whereof 80 000 ha is productive forest land. Click read more below for additional detail.