Stora Enso to Spin Off Swedish Forest Assets, Creating Europe's Largest Pure-Play Forest Company

Stora Enso Initiates Major Forestry Spin-Off

Stora Enso Oyj, a leading renewable materials company, has announced its decision to spin off its Swedish forest assets into a new publicly listed company. This strategic move, which follows a comprehensive review, aims to create Europe's largest listed pure-play forest company. The new entity is valued at approximately €5.7 billion as of September 30, 2025.

The preparations for this separation were initiated by Stora Enso's Board of Directors on November 14, 2025, with the transaction expected to be completed during the first half of 2027.

Strategic Rationale and Shareholder Value

The spin-off is designed to sharpen the strategic focus and enhance market opportunities for both the Swedish forest assets and Stora Enso's core packaging operations. According to Stora Enso, this separation will reduce overall group complexity, optimize capital allocation, and ultimately enhance shareholder value.

Stora Enso's major shareholders, Solidium Oy and FAM AB, who collectively hold approximately 21% of shares and 55% of voting rights, have expressed their support for the contemplated demerger. All shares in the new company will be distributed to current Stora Enso shareholders as demerger consideration, maintaining the existing share structure.

New Entity Details and Leadership

The new publicly listed forest company will comprise over 1.2 million hectares of forest land in Sweden. It is intended to be listed on Nasdaq Stockholm and Nasdaq Helsinki, with its headquarters located in Falun, Sweden.

Tuomas Hallenberg, currently Executive Vice President of Stora Enso's Forest business area, has been appointed President and CEO of the new Swedish forest business. The new company will focus on value creation through sustainable forest management, renewable energy, and carbon sequestration.

Timeline and Approvals

The demerger process is subject to several conditions, including approval and signing of a demerger plan by Stora Enso's Board of Directors, and approval by a General Meeting of Stora Enso to be convened at a later stage. It also requires applicable legal and regulatory approvals.

In connection with the demerger, Stora Enso plans to enter into a long-term 18-year wood supply agreement with the new company. This agreement will initially secure approximately 9% of Stora Enso's Nordic wood and fiber supply, with non-exclusive volumes becoming increasingly available for other customers over time.