Sorainen advised Södra Skogsägarna ekonomisk förening, a Swedish forest owners’ association, 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) at transaction value of EUR 720 million. This transaction represents the largest forest property portfolio divestment in the Baltic region to date.
About transaction
The sale is part of Södra’s strategic shift 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, vendor’s legal and tax due diligence, drafting transaction documentation and negotiating the transaction terms. The completion of the transaction is subject to approval by the relevant regulatory authorities.
Sorainen key 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.
