On February 15, 2023, Latvian Forest Company AB signed a letter of intent to sell its two Latvian subsidiaries to a Sweden-based well-established company active in the forest industry. The buyer has announced that it does not intend to complete the contemplated transaction. The stakeholder has informed that the decision was taken considering the rapidly changing market and a related adjustment in the buyer’s strategy in relation to the acquisition opportunity.
Latvian Forest Company does not currently intend to seek other opportunities to sell the assets, but instead plans to continue operations for the time being in line with the previously established strategy, i.e. to manage and refine the assets to increase their value.
The property holdings at the time of this press release amount to a total of 7,998 hectares. Of these, 6,513 hectares were forest land and 1,485 hectares other land. At the same time, the total growing stock was estimated at approx. 1,150,000 cubic meters after completed fellings, property purchases and sales.
For further information, please contact
Aleksandrs Tralmaks, CEO
+37129203972
Or 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 for publication, through the agency of the contact person set out above, at 11.00 CET on April 29 2023.
About the company:
Latvian Forest Company AB (publ) is a Swedish listed company that acquires, sells and conducts forestry on favourably valued forest in Latvia and Lithuania. The three main foundations of the business are, in addition to the fact that forest is a sought-after real asset that grows on its own;
- an expected increase in the price levels of forest and agricultural real estate
- adding value through active forest management
- to create value increase by building up a larger property portfolio.