Stora Enso advances Swedish forest demerger – over 1.2 million hectares for new company
Stora Enso’s Board of Directors has approved a demerger plan to separate its Swedish forest assets business into a new listed company, Bergslagets Skogar. The demerger is planned for 31 March 2027 and would transfer more than 1.2 million hectares of forest assets in Sweden to the new company.
Stora Enso’s planned separation of its Swedish forest assets business has progressed with the Board’s approval of the demerger plan. Completion remains subject to approval by shareholders at an Extraordinary General Meeting, expected to take place on 15 December 2026, and other conditions.
Bergslagets Skogar intends to list its shares on the Stockholm and Helsinki stock exchanges as soon as possible after completion. According to Stora Enso, it would become Europe’s largest listed pure-play forest company.
Stora Enso shareholders would receive one share in the corresponding share class of Bergslagets Skogar for each Stora Enso share they hold. They would retain their existing Stora Enso shares.
Separating forest ownership from industrial operations
The assets transferred to Bergslagets Skogar would include Stora Enso’s forest land holdings in Sweden, their management and development, and related forestry operations. The business would also include paint and pigment production and the management of renewable energy projects.
Stora Enso would continue to focus on renewable materials and packaging. The company says the separation would simplify both businesses and allow each to allocate capital more directly to its own priorities.
Stora Enso’s Chair of the Board, Håkan Buskhe, describes approval of the plan as an important step towards creating two focused companies with clearer strategic priorities and investment propositions.
Timber sales underpin the new business
Bergslagets Skogar’s operations would be built around more than 1.2 million hectares of forest assets in Sweden. The company would seek returns from timber sales, forest growth, appreciation in forest asset values and other uses of its land.
Bergslagets Skogar CEO Tuomas Hallenberg highlights renewable energy and climate solutions as potential sources of additional value alongside timber sales.
According to Hallenberg, the ambition is to create Europe’s largest listed pure-play forest company, combining stable cash flow from responsible timber sales with opportunities in renewable energy and future climate solutions.
The company’s strategic targets include increasing net standing timber volume by an average of 1% annually. It also aims to increase its biodiversity and climate benefits.
Over the long term, Bergslagets Skogar targets an annual free cash flow yield of 2%. Its dividend policy aims to distribute 80–100% of adjusted net profit as ordinary dividends.
Stora Enso’s net debt would decline
The demerger is expected to reduce Stora Enso’s net debt by approximately EUR 800 million. It is not expected to have a material impact on reported sales, as the separated business has historically generated much of its revenue through transactions within the Stora Enso Group. Its earnings would, however, no longer be included in Stora Enso’s results.
Stora Enso’s five largest shareholders by voting rights have committed, subject to certain customary conditions, to vote in favour of the demerger. Together, they represent approximately 28.6% of shares and 69.9% of votes.
Strategy to be presented in November
Bergslagets Skogar will hold its first Capital Markets Day in Stockholm on 3 November. Its management team will present the planned strategy, business model and financial targets for the company as an independent business.
The event can be followed via a live webcast from 09:00 CET, or 10:00 Finnish time. The programme also includes an update on the demerger preparations from Stora Enso President and CEO Hans Sohlström.
