Stora Enso plans to separate its Swedish forest business, covering more than 1.2 million hectares, into a new company targeting ordinary dividends of 80% to 100% of adjusted net income.
The board approved the partial cross-border demerger plan Oct. 30. If shareholders approve it, each would receive one share of the corresponding class in Bergslagets Skogar AB for each Stora Enso share held and retain their existing shares. Bergslagets Skogar intends to seek listings on Nasdaq Stockholm and Nasdaq Helsinki.
The transfer would include Swedish forest land and forestry operations, as well as paint and color pigment production and renewable energy project management. Adjusted net income would leave out changes in biological-asset values, gains or losses from selling fixed assets or investments, and comparability items. The calculation would subtract reforestation investment after tax.
Other targets include average annual net standing stock growth of 1%, a long-term annual free cash flow return of 2%, a net loan-to-value ratio of 0% to 20%, and increased biodiversity and climate benefits.
Stora Enso’s preliminary, unaudited illustration for the 12 months through Sept. 30, 2026, showed net sales of SEK 2.119 billion and adjusted operating profit of SEK 1.411 billion, a 67% margin. Free cash flow was SEK 984 million, and forest assets were valued at SEK 63.75 billion. The figures are illustrative and do not include adjustments for standalone costs.
The new company estimates net debt of roughly SEK 9.1 billion soon after the demerger; secured term-loan facilities could provide up to SEK 9.5 billion. Stora Enso expects its net debt to fall by about €800 million after the separation.
Stora Enso says the plan is intended to sharpen the companies’ focus, improve capital allocation and reduce group complexity. The company also says a Swedish advance tax ruling found the transaction qualifies as a partial demerger, but the Swedish Tax Agency appealed the ruling. The Supreme Administrative Court has yet to issue its final decision. Stora Enso’s board has reserved the right not to complete the deal if it considers that to be in the best interests of the company and shareholders.
Bergslagets Skogar’s Capital Markets Day is scheduled for Nov. 3 in Stockholm. Stora Enso expects to send shareholders an information brochure by Nov. 24, ahead of an extraordinary general meeting expected Dec. 15. Completion is planned for March 31, 2027, subject to shareholder approval and other conditions.
