Tuesday , July 27 2021

Ministry Explains why "Bervig Skog" did not buy timber property "Latvijas valsts meži" – in Latvia

The selling price of Forest Forest "Bergvik Skog" forest property and companies in Latvia, bought by the Swedish forestry sector Södra, the Latvian State Forest (LVM), was too high, said Arvids Ozols, Forestry Director of the Ministry of Agriculture (ZM).

He said that such funds were not available to the LVM, as dividend payments to the state budget did not decrease.

"In the end, it's a price offer," Ozols said, commenting on why LVM is not the owner of the Bergvik Skog forest property in Latvia.

At the same time, he adds that Forestry companies Bergvik Skog and companies in Latvia have won one of the leading European forestry companies already operating in Latvia – "Södra", so the Ministry of Agriculture is not concerned about further forest management.

Representatives of LVM in LETA also acknowledged that the sales price of forest property and Bergvik Skog company significantly exceeded the upper limit of LVM's bid price. The company confirmed that Lvm Bergvik Skog was among the owners of forests and business customers and started buying a bargain.

"The final price of the arrangement has significantly exceeded the upper limit of the price set by the LVM, which is designed to take into account the future cash flow and revenue from socially responsible, environmentally friendly and sustainable forest management, with the aim of increasing the value of forest property in the long run. It should be borne in mind that the future forest management conditions also depend on the price offer, "LVM said.

LVM congratulated Bergvik Skog and Södra on a successful transaction. "The Latvian Forestry Sector is currently seeing an experienced and responsible forest owner entering a list of Latvian forest owners," LVM said.

The LETA agency has already reported that Swedish Bergvik Skog sold its forest estate and businesses on Tuesday in Sweden's Swedish Forestry Södra and handed over its business – Bergvik Skog and Ruda – to Latvia with all its employees under the responsibility of Södra, so Bergvik Skog sold 111 100 hectares of land, of which 80,300 hectares of productive forest land. The transaction amounted to EUR 324 million.

List Latvijas Avīze has previously reported that the interest in acquiring Latvian forests belonging to the Swedish "Bergvik Skog" has been proven by 20 companies, including three companies from Latvia. The plot was planned to be sold by the end of this year.

Previously, it was mentioned that the "Latvian state forests" were interested in acquiring property.

Information "Firmas.lv" shows that in 2017 the turnover of "Bergvik Skog" amounted to EUR 2,423 million, but the company earned EUR 275,931.

The company was registered in 2003 and its share capital is 106,025 million euros. The company is owned by the Swedish firm Bergvik Skog.

The Swedish "Södra" in Latvia has a subsidiary of "Sorda meži". The website says that the company has long invested in forests in the Baltic States, and since 2006 has owned a forest in Latvia.

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