Sorainen advised Södra Skogsägarna ekonomisk förening,
an association of Swedish forest owners, on the divestment of its forest holding companies in Latvia and Estonia – totalling approximately 153,000 hectares of land – to Ingka Investments, the investment arm of Ingka Group (the largest IKEA retailer), a transaction worth EUR 720 million. This transaction represents the largest divestment of a forest property portfolio in the Baltic region to date.
About the transaction
The sale is part of a strategic shift by Södra to focus on managing and adding value to its members’ forest properties in Sweden, rather than owning forest land abroad. The majority of the forest assets are located in Latvia, with the remainder in Estonia.
Our involvement and team
Sorainen provided comprehensive legal support throughout the transaction, including strategic advice, legal and tax due diligence on the vendor, drafting transaction documentation and negotiating the transaction terms. Completion of the transaction is subject to approval by the relevant regulatory authorities.
The Sorainen core team consisted of managing partner Eva Berlaus and senior associate Natālija Ešenberga, with other team members, including partner Aija Lasmane and senior associate Mirjam Vichmann assisting.
