Stora Enso to separate Swedish forest assets into new company

The Finnish group initiated the review this summer as part of its stronger focus on renewable packaging.

After assessing various options, and having completed the divestment of approximately 175,000 hectares of forest land, for an enterprise value of EUR 900-m,  the company’s board said it would initiate preparations for the separation of its Swedish forest assets business into a new publicly-listed Swedish company through a statutory partial cross-border demerger of Stora Enso.

Stora Enso said its major shareholders Solidium Oy and FAM AB, holding in the aggregate approximately 21% of the shares and approximately 55% of the voting rights in Stora Enso, support the contemplated demerger.

Shareholders of the group would receive all the shares in the new company – to be established upon the eventual completion of the demerger – as demerger consideration in proportion to their shareholdings in Stora Enso, and the share structure with A and R shares would remain unchanged in the new company.

The shares of the new company would be traded on Nasdaq Stockholm and on Nasdaq Helsinki.

The company’s board said the demerger would be the best option to unlock the full potential of both the Swedish forest assets and Stora Enso’s core packaging business, as well as to optimise capital allocation and reduce complexity.

“Moreover, the demerger will enable enhanced focus on the respective companies’ core strengths and market opportunities, thus allowing the respective businesses to be assessed on their own merits; maximising operational and shareholder value,” it further stated.

Stora Enso said the new company “will emerge as Europe’s largest listed pure play forest company, owning a distinct class of assets with expected long-term value appreciation, for example, from a naturally growing standing stock”.

Tuomas Hallenberg, currently executive vice president of Stora Enso’s Forest business area, has been appointed president and CEO of Stora Enso’s Swedish forest business.

Hans Sohlström, president and CEO of Stora Enso, said: “We are excited to now enter the next phase of this important chapter in our company’s history. 

“The demerger will create a solid foundation for independent growth of both companies. Moreover, the two companies would maintain a strategic relationship, where Stora Enso gains access to a long-term wood supply agreement with the new company, securing revenues for both parties.”

The contemplated demerger would be subject to several conditions, including various market conditions and applicable legal approvals and procedures. Stora Enso said it expects to announce the cross-border demerger during the second half of 2026, and complete it in the first half of 2027.