SWEDEN (News release) -- BillerudKorsnäs had signed a letter of intent to acquire Bergvik Skog Öst AB, which comprises approximately 350,000 hectares of forest land in Sweden. Since the signing of the letter of intent, the company has carried out due diligence of Bergvik Skog Öst AB and negotiated the final terms of the acquisition agreement.
Bergvik Skog Väst AB will be distributed to the shareholders of Bergvik Skog AB, with BillerudKorsnäs receiving approximately 5% of the shares in Bergvik Skog Väst AB.
BillerudKorsnäs has also signed an agreement to transfer these 5% to Stora Enso. After such transfer, Bergvik Skog Väst AB will be subject to a demerger between the remaining shareholders in the company.
The transactions, which inter alia are conditional upon approval by the Swedish Competition Authority, upon the distribution of Bergvik Skog Väst AB and upon the establishment and registration of a final demerger plan for Bergvik Skog Väst AB, are expected to be completed during the first half of 2019.
The purchase price for Bergvik Skog Öst AB amounts to approximately SEK 6.4 billion on a debt free basis and after reduction of deferred tax, corresponding to approximately SEK 18,000 per hectar of forestland. The cash effect of the acquisition of Bergvik Skog Öst AB, net after the sale of 5% of the shares in Bergvik Skog Väst AB, is expected to amount to approximately SEK 5.4 billion. The acquisition is financed with bank loans.
Bergvik Skog AB is one of the largest forest owners in Europe. In Sweden the company owns 2.3 million hectares of land, primarily in mid-Sweden.
BillerudKorsnäs is one of the leading manufacturers of packaging paper made from virgin fibers.
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