Industriförvaltnings AB Kinnevik's subsidiary Korsnäs has closed the transaction to restructure the ownership of its Swedish forestlands announced in December 2003. The majority of the shares in Bergvik Skog AB have been sold to institutional investors. The main equity investors besides Korsnäs, and its partner in this transaction Stora Enso, 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. Hans Jonsson is nominated by Länsförsäkringar Liv. Following the transaction, Korsnäs and Stora Enso retain 5.0% and 43.3% shareholdings respectively in Bergvik Skog.
A debt facility of SEK 11,100 million has been provided to Bergvik Skog by a syndicate of international banks. The facility is arranged by Nordea and Handelsbanken.
The Swedish forests of Korsnäs are transferred to Bergvik Skog, which has entered into a long-term wood supply contract to grant Korsnäs approximately 1.0 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.
Korsnäs' cash proceeds from the transaction is SEK 3,050 million, which will result in a reduction of interest bearing net debt of SEK 2,874 million after investing SEK 176 million in shares in Bergvik Skog. The transaction will result in a capital gain of about SEK 475 million, which will be shown in the first quarter 2004 results. The forest sold in this transaction represented an operating profit of approximately SEK 140 million in 2003.
For further information, please visit www.kinnevik.se or contact:
Vigo Carlund, CEO, Industriförvaltnings AB Kinnevik
tel: +46 8 5620 0000
Henrik Persson, Investor & Press Relations
tel: +44 20 7321 5010
The Swedish forests of Korsnäs are transferred to Bergvik Skog, which has entered into a long-term wood supply contract to grant Korsnäs approximately 1.0 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.
Korsnäs' cash proceeds from the transaction is SEK 3,050 million, which will result in a reduction of interest bearing net debt of SEK 2,874 million after investing SEK 176 million in shares in Bergvik Skog. The transaction will result in a capital gain of about SEK 475 million, which will be shown in the first quarter 2004 results. The forest sold in this transaction represented an operating profit of approximately SEK 140 million in 2003.
For further information, please visit www.kinnevik.se or contact:
Vigo Carlund, CEO, Industriförvaltnings AB Kinnevik
tel: +46 8 5620 0000
Henrik Persson, Investor & Press Relations
tel: +44 20 7321 5010
Industriförvaltnings AB Kinnevik was established in 1936 as an investment holding company. The Company's objective is to increase shareholder value, primarily through net asset value growth. The business consists of operating companies such as farming company MSLA and cartonboard and paper producer Korsnäs AB, and a portfolio of long-term investments in a select number of listed companies such as Tele2 AB, Modern Times Group MTG AB, Millicom International Cellular S.A., Metro International S.A., Transcom WorldWide S.A. and Invik & Co. AB. Kinnevik plays an active role on the Boards of its subsidiaries and associated companies.
Kinnevik's A' and B' shares are traded on the Stockholmsbörsen A-list'.
Kinnevik's A' and B' shares are traded on the Stockholmsbörsen A-list'.
