Stora Enso plans to sell forest in Sweden

Forestry company Stora Enso says that it is preparing to sell about 12 percent of its 1.4 million hectares of forest assets in Sweden.

According to the company, the sale would reduce Stora Enso’s debt and thus strengthen the balance sheet. The deal would also strengthen the economic value of the company’s forest assets.

The company says that it has initiated actions to create a new legal structure for its Swedish forest assets in order to promote a possible sale. The terms and conditions of a possible sale, including long-term wood procurement and forest management contracts, will be agreed separately with the buyer.

Stora Enso’s share price was up 4.4 percent at 11.91 euros on the Helsinki Stock Exchange after 10 a.m. on Thursday.

In the second quarter of 2024, Stora Enso’s net debt increased by 466 million euros from a year ago, mainly due to the cardboard investment at the Oulu mill, and was 3,497 million euros.

The ratio of net debt to adjusted EBITDA rose to 3.5 from 1.7 in the comparison period, while the company’s target is 2.0.

By Editor

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