HELSINKI – October 30, 2026 -- Stora Enso's Board of Directors has approved a demerger plan to spin off its Swedish forest assets business into Bergslagets Skogar AB, with completion planned for 31 March 2027. The five largest shareholders by votes, holding about 28.6% of shares and 69.9% of votes, have irrevocably committed to vote in favour, subject to customary conditions.
Shareholder vote set for 15 December 2026
An Extraordinary General Meeting is expected on 15 December 2026 to decide on the cross-border partial demerger. Stora Enso expects to publish an information brochure for shareholders by 24 November 2026 at the latest. A listing prospectus will follow shortly after completion and before public trading begins.
Bergslagets Skogar intends to apply for admission to the regulated markets of Nasdaq Stockholm and Nasdaq Helsinki. It would be a Swedish public limited liability company.
New company would take forests, pigments and renewable energy projects
The business to be transferred covers ownership, management and development of Stora Enso's forest land and related forestry operations in Sweden. It also includes production of paint and colour pigments and management of renewable energy projects. Stora Enso says the company would be Europe's largest listed pure-play forest company.
The move follows a strategic review of the Swedish forest assets, with the separation first announced on 14 November 2025. Stora Enso says it will concentrate on renewable materials and packaging. It cites optimised capital allocation and reduced group complexity as aims.
Targets cap net loan-to-value at 20% and set an 80-100% payout
Stora Enso's board, in consultation with the selected management and proposed board of Bergslagets Skogar, has set five strategic targets:
- Net standing stock volume to grow 1% per year on average.
- Long-term annual free cash flow return of 2%.
- A rising biodiversity benefit.
- A rising climate benefit.
- Net loan-to-value between 0% and 20%.
The dividend policy aims for a stable and growing payout. Bergslagets Skogar intends to distribute 80% to 100% of adjusted net income as ordinary dividend. Adjusted net income excludes changes in the net value of biological assets, gains and losses on sales of fixed assets and investments, and items affecting comparability. It is also reduced by after-tax investments in reforestation.
Reforestation spending to be booked as investment
Bergslagets Skogar would recognise reforestation expenditure as an investment in forest assets, unlike Stora Enso. It has also voluntarily elected to apply IFRS 18, which becomes mandatory for periods starting on or after 1 January 2027. Its illustrative financials are based on unaudited combined figures for financial year 2025 and the twelve months to 30 September 2026. They include no adjustments for stand-alone costs.
Management will present its strategy, targets, dividend policy and capital structure at a first Capital Markets Day on 3 November 2026.
Stora Enso sales largely unaffected, operating profit to fall
Stora Enso does not expect a material impact on reported sales, since Bergslagets Skogar's sales have been largely internal to the group. Its IFRS operating profit will decrease largely by the amount of Bergslagets Skogar's operating profit.
Stora Enso Chair Håkan Buskhe said the plan creates two focused companies with clearer strategic priorities and investment propositions.