Latvian Forest Company has, in accordance with a resolution at the Extraordinary General Meeting on March 27, 2019, completed the sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
SCA Mezs Latvija, a wholly owned subsidiary of Svenska Cellulosa Aktiebolaget SCA, has taken over and paid the shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA in accordance with the share transfer agreement entered into and communicated to the market on March 8, 2019. The decision to sell SIA Latvijas mezu kompanija and Baltic Forest IV SIA were taken by the Annual General Meeting of Latvian Forest Company on March 27, 2019, according to previous press release.
The purchase price is estimated to amount to EUR 16.7 million, together with payment for shareholder loans from the parent company of EUR 9.4 million, which is shown in the value of the subsidiaries’ forest and agricultural properties corresponding to EUR 26.2 million.
The purchase price for the shares in the subsidiaries is calculated according to the pro forma balance sheet amounting to EUR 16.7 million, with the addition that the buyer repays the shareholder loan corresponding to EUR 9.4 million, which corresponds to the value of the subsidiaries’ forest and agricultural properties (EUR 26.2 million), reduced certain transaction costs and adjusted by net working capital. The final purchase price is determined by the access balance sheet to be handed over to the buyer within 30 business days of access.
For further information, please contact
Aleksandrs Tralmaks, CEO
+37129203972
[email protected] visit our website: www.latvianforest.se
This information is such information that Latvian Forest Company AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the above contact person, for publication on April 8, 2019 at. 16.00 CET.
About the company:
Latvian Forest Company AB (publ) is a Swedish listed company that acquires, sells and carries out forestry in favorably valued forest in Latvia. The three main reasons for the business are, besides that forest is a sought-after real asset that grows by its own power;
– an expected increase in price levels for Latvian forest and agricultural properties
– to create value growth through active forest management
– to create value increase by building up a larger property portfolio.