Stora Enso approves the demerger of its Swedish forests into Bergslagets Skogar, listing planned for 2027
Shareholders vote on 15 December, and the new company would list on Nasdaq Stockholm and Nasdaq Helsinki after completion planned for 31 March 2027. Stora Enso would keep its focus on packaging.
The board of Stora Enso, the Finnish renewable materials and packaging group, has approved a demerger plan to separate its Swedish forest assets business into a new listed company called Bergslagets Skogar AB. The company announced the step on Friday 30 October, together with strategic targets and a dividend policy for the new business.
Stora Enso says Bergslagets Skogar would be the largest listed pure-play forest company in Europe. Shareholders will vote at an extraordinary general meeting expected on 15 December 2026, and the demerger is planned to complete on 31 March 2027, Reuters reported via ESM Magazine.
What is being split off
According to the stock exchange release, Bergslagets Skogar would take over the ownership, management and development of Stora Enso's forest land and related forestry operations in Sweden, together with the production of paint and colour pigments and the management of renewable energy projects. Stora Enso first announced its intention to separate the business on 14 November 2025, after a strategic review.
Shareholders will receive one new share in Bergslagets Skogar for each Stora Enso share they own, in the corresponding share class. They keep their Stora Enso shares. Bergslagets Skogar plans to apply for trading on the regulated markets of Nasdaq Stockholm and Nasdaq Helsinki as soon as possible after completion.
The numbers
Stora Enso published preliminary, unaudited illustrative figures for the new company. For the twelve months to 30 September 2026, Bergslagets Skogar had total net sales of SEK 2,119 million, adjusted operating profit of SEK 1,411 million, a 67% margin, and free cash flow of SEK 984 million. Its forest assets were valued at SEK 63,750 million, giving a free cash flow return of 1.6%.
The new company would start with net debt of about SEK 9.1 billion. Stora Enso has secured up to SEK 9.5 billion in secured term loan facilities from Nordic lenders for Bergslagets Skogar. Stora Enso's own net debt would fall by about €800 million on completion.
Targets and dividends
Bergslagets Skogar aims to grow its net standing stock volume by 1% a year on average, to generate an annual free cash flow return of 2% over the long term, to increase biodiversity and climate benefits, and to keep a net loan to value ratio between 0% and 20%. Its dividend policy is to pay 80% to 100% of adjusted net income as an ordinary dividend, aiming for a stable and growing payout.
Tuomas Hallenberg has been appointed chief executive of Bergslagets Skogar, and Johan Trolle-Löwen is the proposed chair. The management team will hold its first capital markets day on 3 November 2026.
Support and conditions
The five largest shareholders by votes, Solidium, Wallenberg Investments, the Social Insurance Institution of Finland, Ilmarinen and Varma, together hold about 28.6% of the shares and 69.9% of the votes. They have irrevocably undertaken, subject to customary conditions, to vote in favour. The Finnish tax authorities have confirmed the demerger is tax neutral for Finnish shareholders. In Sweden, an advance tax ruling in Stora Enso's favour has been appealed by the Swedish Tax Agency to the Supreme Administrative Court, and a decision is pending.
Stora Enso's quarter
In separate third-quarter results, Stora Enso's adjusted operating profit rose to €161 million, ahead of a Vara consensus of €155.8 million, and it cut its 2026 capital expenditure estimate to about €500 million, Reuters reported. "We have, during the last years, invested heavily in our company into state-of-the-art technology, into additional capacity, especially in renewable packaging materials. And now it's time to harvest," chief executive Hans Sohlström told Reuters.
What it means for founders and investors
The split is part of a wider European trend of conglomerates separating assets that investors value differently, as seen this autumn with TK Accelis and thyssenkrupp. Forest land is valued for stable cash flow and long-term appreciation, while packaging is valued on growth and margins. Splitting them lets each attract a different investor base.
For climate and nature tech founders, a listed forest owner with explicit biodiversity and climate targets is a potential customer. Forest monitoring, carbon measurement, biodiversity data and forestry software all become more relevant when a public company has to report on those targets to shareholders. For packaging startups, a more focused Stora Enso that says it is now in harvest mode after heavy investment could be a more active partner for new fibre-based materials.
The main risks before completion are the shareholder vote, which looks well supported, and the Swedish tax case, which could affect Swedish shareholders. Stora Enso's board can still decide not to complete the demerger if it sees material reasons.
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