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Friday, 02.05.2025, 06:09
Swedish Bergvik Skog AB becomes major Latvian forest owner
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Bergvik Skog AB acquired 100 percent capital share of the company Fraxinus from the U.S. investment fund Phemus Corporation and bought 100 percent capital shares of Ruda" owned by four Swedish enterprises. Parties involved have agreed not to disclose the value of the deal.
Bergvik Skog AB in Latvia will manage around 26,000 hectares land with the total wood-pulp stock of around 2 million to 2.5 million cubic meters of wood, as well as slightly more than 4000 hectares other land.
As Db points out, taking in consideration the volume of the acquired territory and the average price of forest land in Latvia, which is around LVL 1,500 to LVL 2,000 per hectare, sum of the deal could be estimated around LVL 40 million to LVL 50 million. The same sum can be can be concluded from calculations, taking in consideration volume of the stock.
As Db was informed by the chairman of the board at Bergvik Skog AB, Tobjorn Larson, the acquisition of both enterprises is a long-term investment. The deal is planned to be completed on May 26.
There are no plans to acquire other significant assets in Latvia in the near future, however, smaller deals could take place in order to develop structure of the group of enterprises, Larson explained, adding that cooperation with existing partners will be retained, however, in the future, revision of operational strategy is possible.
Db reports that Bergvik Skog AB is one of the largest forest owners in Sweden, managing around 1.9 million hectares of forest land and felling around 6.2 million cubic meters of trees every year.
The biggest owner of Bergvik Skog AB with 43 percent share, is company Stora Enso.5 percent belong to the concern Korsnas. The rest of capital shares are owned by several Swedish insurance companies and funds.
As the newspaper reports, it is the largest deal involving forest land in Latvia. The widest scale deal so far had been the acquisition of 4800 ha of forest property, owned by Finnish company Metsalitto, by the Swedish holding company Sodra Skog.
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