Södra has reached an agreement to divest its forest holdings in the Baltics to Ingka Investments, the investment arm of Ingka Group (the largest IKEA retailer). The next step is a competition review and approval from local authorities before the divestment can be finalised and the handover completed. For Södra, with its mission to refine and renew family forestry, this marks an important step in the implementation of its strategy - which focuses on making more from every tree that comes from its members' forests.

In the best interests of Södra's forest estates and the Group's long-term competitiveness, Södra decided earlier this year to divest its forest holding in the Baltics. Since then, a process has been underway to identify the right buyer, and this has now reached an important milestone with the conclusion of an agreement between Södra and Ingka Investments. The divestment includes Södra's entire current holding in Latvia and Estonia, and the transaction is valued at EUR 720 million, equivalent to approximately SEK 8 billion.

"As a forest owners' association with more than 50,000 members in southern Sweden, our mission is focused on our members' forests - not on owning forest abroad. The holdings in the Baltics has been a good financial investment for Södra, and this divestment enables us to sharpen our focus on making more from every tree and strengthening our long-term competitiveness. It contributes to enhancing the profitability of the forest estate in a responsible way. We now look forward to successfully concluding this transaction together with Ingka Investments," said Lotta Lyrå, President and CEO of Södra.

Before completion of the transaction, competition reviews are required in both countries, as well as approval in Latvia regarding foreign direct investment. The impact on Södra's financial results will be reported in the quarter in which regulatory approval is granted and the divestment is finalised. Once the process is complete, Södra's presence in the Baltics will consist of two timber import companies - one in Latvia and one in Estonia.

"Following the acquisition, we will continue the great forestry work that Södra has established in these well-maintained forests. Our goal is to manage the forests for the long-term, preserving and improving their health, whilst providing this renewable resource for furniture and other uses," said Peter van der Poel, Managing Director of Ingka Investments.