LATVIAN FOREST COMPANY SIGNS SHARE TRANSFER AGREEMENT WITH SCA MEZS LATVIA
Latvian Forest Company signs share transfer agreement with SCA Mezs Latvija, SIA, a wholly owned subsidiary of Svenska Cellulosa Aktiebolaget SCA, regarding sale of all its operating subsidiaries.
Latvian Forest Company AB signs, in accordance with the previous statement of intent, a share transfer agreement with SCA Mezs Latvija, SIA regarding the sale of all shares in the operating subsidiaries SIA Latvijas Mezu Kompanija and Baltic Forest IV SIA, meaning a divestment of the company’s operations.
The purchase price is estimated to be approximately EUR 16.7 million and payment for shareholder loans from the parent company of approximately EUR 7.9 million as shown from the value of the subsidiaries’ forest and agricultural properties equivalent to EUR 26.2 million.
The purchase price for the shares in the subsidiaries is calculated according to a proforma balance sheet to EUR 16.7 million, preliminary, adding that the buyer repays shareholder loans equivalent to EUR 7,9 million, corresponding to the value of the subsidiaries’ forest and agricultural properties (EUR 26.2 million) decreased by bank loans, certain transaction costs and adjusted with net operating capital. The final purchase price is determined later by the entry balance sheet.
Since a sale of the shares in the subsidiaries indirectly means that the company’s entire business is divested, the question of the sale of the subsidiary shares will be subject to shareholders at an extraordinary General Meeting. The Company’s Board of Directors will call an Extraordinary General Meeting within the next few days for a decision on the matter.
The share transfer agreement is also conditional to the Board of Directors of the purchasing company approving the transaction.
The withdrawal of the shares in the two subsidiaries is expected to take place around the turn of the month April/May 2019.
For further information please contact
Aleksandrs Tralmaks, VD
+37129203972
Visit our website: www.latvianforest.se
This information is information that Latvian Forest Company AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the above contact person, for publication on March 8, 2019 at 11.00 CET.
About the company:
Latvian Forest Company AB (publ) is a Swedish listed company that acquires, sells and conducts forestry on favorable valued forests in Latvia. The three main bases of the business are, in addition to forests being 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 increase through active forest management.
– to create value growth by building a larger property portfolio.