Segezha Group plans to buy Inter Forest Rus from Bonum Capital for $515 mln
2021-10-11 11:24

Segezha Group plans to buy Inter Forest Rus from Bonum Capital for $515 mln

Forest industry holding Segezha Group plans to buy 100% stake in Inter Forest Rus from Bonum Capital. The cost of the deal could amount to USD 515 million, Segezha Group said on Monday.

"Segezha Group PJSC <...> announces its intention to acquire 100% stake in the authorized capital of Inter Forest Rus LLC, which unites a number of timber assets in Krasnoyarsk Territory and Irkutsk Region with significant timber resources, for $515 million," the statement said.

The deal will allow the holding to double the size of the calculated woodcutting area to 23.6 million cubic metres and become one of the biggest tenants of forest resources in the world. Under the management of Segezha Group in this case there will be 16 million hectares of forests, and the production of sawn timber will increase by approximately two times - by 1.5 thousand cubic meters, reaching 3.2 thousand cubic meters. The production of pellets will increase by 1.8 times - by 170 thousand tons, up to 380 thousand tons. The volumes of plywood production will also increase by nearly 20% up to 232 thousand cubic meters.

The deal is expected to be closed by the end of March next year.

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Author: Ksenia Gustova