Stora Enso sells North American arm
James Savage · 21 Sep 2007, 11:24
Published: 21 Sep 2007 11:24 GMT+02:00
The deal to sell the North American subsidiary to US-owned Newpage Holding will require regulatory approval, and is expected to complete in the first quarter next year.
Stora Enso will receive approximately $1.5 billion in cash, a $200 million note, and a 19.9% equity interest in the new company. Newpage will take over a net debt of around $450 million.
The deal is not expected to have an impact on Stora Enso's third quarter results, although it is expected to reduce by €800 million a €1.3 billion write-down which Stora Enso had previously flagged.
"This is the first major step in focusing our operations to improve the long-term earnings of Stora Enso. The divestment will simplify our Group structure and strengthen our focus on Europe as well as Stora Enso's growth markets," said Jouko Karvinen, Stora Enso CEO.