Stora Enso plans to spin off 1.2 million hectares of Swedish forests and list the business
Key Facts
Stora Enso’s board has approved a plan for a cross-border partial demerger of its Swedish forest assets business into Bergslagets Skogar AB, according to a company announcement dated 30 October 2026. The approval is a procedural step toward creating an independent entity, but completion of the demerger remains conditional, among other things, on shareholder approval. The new company intends to seek listings for its shares on Nasdaq Stockholm and Helsinki. The plan covers the transfer of assets, rights, debts and obligations that relate to, or primarily serve, the Swedish forest business. The business scope includes land ownership, management and development, as well as related forestry operations in Sweden.
Under the proposed distribution mechanism, Stora Enso shareholders will receive one share of the corresponding class in Bergslagets Skogar for each share they hold in the parent company. The ratio is 1:1 for each share class, and shareholders will retain their Stora Enso shares after the demerger. The company said creating an independent entity would allow greater focus on the strengths and market opportunities of the Swedish forest business and its core packaging business. It also identified improved capital allocation, reduced group complexity and accelerated shareholder value creation as aims of the plan. The company presents these aims as reasons for the demerger, not as a guaranteed outcome for shareholders.
Stora Enso says the new company will comprise more than 1.2 million hectares of forest land in Sweden. The company estimated the fair value of the land at about 5.8 billion euros as of 31 December 2025, a historical estimate of the assets planned for separation. Bergslagets Skogar is targeting average annual growth of 1% in net standing timber volume. It is also targeting a long-term annual free cash flow yield of 2%. Its financial targets set net debt as a share of asset value within a range of 0% to 20%.
The announced dividend policy calls for stable and growing distributions, with the company intending to pay between 80% and 100% of adjusted net income as ordinary dividends. Preliminary illustrative financial statements for the combined business show net sales of 2,119 million Swedish krona in the twelve months ended 30 September 2026. Net sales were 2,055 million krona in the comparative period ended 31 December 2025. Adjusted operating profit was 1,411 million krona in the more recent period, compared with 1,378 million in the prior period shown. These figures are preliminary and unaudited, and reflect the Swedish operations controlled by the group at the reporting date.
No adjustments have been made to the illustrative financial statements to reflect the costs of operating the company independently of Stora Enso. This means the published indicators relate to the combined business within the group in its current form, while the company presents the demerger as a way to allocate capital and reduce complexity. Bergslagets Skogar intends to hold its first Capital Markets Day in Stockholm on 3 November 2026. It is scheduled to present its strategy, targets, dividend policy and capital structure as an independent company. A previous announcement in November 2025 had targeted completion of the demerger during the first half of 2027, with the plan then remaining subject to approval by the general meeting.
An extraordinary general meeting of Stora Enso shareholders is expected to be held in Helsinki on 15 December 2026 to consider approval of the demerger. The company said its five largest shareholders by votes had undertaken, subject to customary conditions, to attend the meeting and vote in favor of the plan. Together, these shareholders represent about 28.6% of the shares and 69.9% of the votes. Completion of the demerger remains subject to shareholder approval and the other conditions set out in the plan. The company has set 31 March 2027 as the planned registration date for completion of the demerger, with public trading in the new company’s shares on Nasdaq Stockholm and Helsinki to begin as soon as possible thereafter.