Stora Enso finalises the ownership restr
STORA ENSO OYJ Stock Exchange Release 18 March 2004 at 9.30
Stora Enso finalises the ownership restructuring of its forestlands in Sweden and Canada Stora Enso has finalised the transaction to restructure ownership of its Swedish forestlands announced in December 2003. The majority of shares in Bergvik Skog AB have been sold to institutional investors. The main equity investors besides Stora Enso and its partner in this transaction, Korsnäs, include Länsförsäkringar-Liv, Tredje AP-fonden, Knut and Alice Wallenberg Foundation and Nordea Liv. The chairman of the Board of Directors of Bergvik Skog AB will be Hans Jonsson, nominated by Länsförsäkringar-Liv. Following the sale, Stora Enso and Korsnäs retain 43.3% and 5% shareholdings respectively in Bergvik Skog. A debt facility of SEK 11.1 billion (EUR 1.2 billion) has been provided by a syndicate of international banks, arranged by Nordea and Handelsbanken. The enterprise value of Stora Ensos part is SEK 14.9 billion (EUR 1.6 billion). This will result in a net reduction in interest-bearing net liabilities of about SEK 10.0 billion (EUR 1.1 billion) after the investment in the associated company Bergvik Skog AB and a net increase in equity of about SEK 3.3 billion (EUR 350 million), of which SEK 1.0 billion (EUR 113 million) will be shown as capital gain in operating profit in the first quarter of 2004. The proceeds will be used to develop the Groups core business areas, mainly outside Europe and North America. The transaction will improve the Groups debt/equity ratio by about 0.15. This ratio was 0.48 as at 31 December 2003. The operating profit will be reduced by about EUR 100 million on an annual basis, offset by lower financial charges due to the reduction of interest-bearing net liabilities and by income from associates. The Swedish forests of Stora Enso were transferred to Bergvik Skog, which has entered into long-term wood supply contracts to grant Stora Enso approximately 4.5 million cubic metres (solid under bark) per year of cutting rights at market prices. Bergvik Skog will maintain the former owners environmental certifications and sustainable forestry policies. The calculations have been made at the EUR/SEK exchange rate of 9.2435 on 15 March 2004. The euro sums might fluctuate due to exchange rate changes. Canada Stora Enso has divested also its 146 000 hectares of forestland in Ontario, Canada according to plan. Approximately EUR 18 million of operating capital was released, and the transaction does not have any result effect on Q1/2004. For further information, please contact: Björn Hägglund, Deputy CEO, tel. +46 70 528 2785 Johan Lindman, Senior Vice President, Stora Enso Wood Supply Sweden, tel. +46 23 78 24 40 Bo Eriksson, Senior Vice President, Controller, tel. +358 40 532 1494 Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348 197 Keith Russell, Senior Vice President, Investor Relations, tel. +44 7775 788 659 Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications, tel. +358 2046 21242 www.storaenso.com www.storaenso.com/investors Previous press releases concerning Stora Ensos forest asset restructuring programme on www.storaenso.com -> Media Centre 8 December 2003: Stora Enso to restructure its forest ownership 4 December 2002: Stora Enso finalises its divestment of forestlands in Finland and the USA 20 September 2002: Stora Enso sells forest assets in the USA 16 May 2002: Stora Enso to restructure its forest ownership in Finland and the USA STORA ENSO OYJ p.p. Jussi Siitonen Jukka Marttila