Stora Enso moves to spin off its Swedish forest assets into a new entity, Bergslagets Skogar, aiming to create Europe's largest listed pure-play forest company and streamline its own packaging-focused operations.
Bergslagets Skogar is being established as a new, independent, pure-play forest company, positioning itself to become Europe's largest listed entity in this sector. The company aims to leverage its high-quality forest assets to provide stable, long-term returns through a clear dividend policy and disciplined capital management.
The company intends to pay a stable and growing dividend, targeting 80-100% of adjusted net income, which excludes changes in the net value of biological assets and certain other non-recurring items.
The company will hold all assets, rights, liabilities, and responsibilities related to Stora Enso's Swedish forest business, including forest land ownership, management, development, paint/pigment production, and renewable energy projects.
Stora Enso is undergoing a strategic partial demerger to spin off its Swedish forest assets into a new entity, Bergslagets Skogar. This move is designed to reduce corporate complexity and allow Stora Enso to sharpen its focus on its core renewable materials and packaging business, while unlocking value for shareholders through a more streamlined capital allocation.
Stora Enso shareholders will receive one share in Bergslagets Skogar for every share held in Stora Enso, maintaining the same share class structure (A-shares for A-shares, R-shares for B-shares).
Stora Enso's reported IFRS operating profit will decrease by an amount corresponding to the profit generated by the Swedish forest assets, and net debt is expected to decrease by approximately 800 million euros.
Stora Enso has officially approved the demerger of its Swedish forest operations into a new independent listed company, Bergslagets Skogar AB. The move aims to sharpen Stora Enso's focus on its core packaging business while unlocking value in its forest holdings. Bergslagets Skogar plans to list on Nasdaq Stockholm and Nasdaq Helsinki, targeting a dividend payout of 80-100% of adjusted net income.
The demerger is designed to unlock the full potential of the Swedish forest business while allowing Stora Enso to focus more effectively on its core renewable materials and packaging operations.
Bergslagets Skogar intends to pay a stable and growing dividend, targeting a payout ratio of 80-100% of its adjusted net income.