- This acquisition is part of our long-term strategic plan to build a strong equity base on a foundation of forest and land assets in Brazil, comments CEO Andreas Forssell.
The plantation of 1,046 hectares is located in the county of Vigia, State of Pará.
- The location is very attractive only one hour drive away from the Eternali office in Belém, the state capital of Pará, comments Gustavo Silveira, chairman and COO.
The plantation is sub-divided into six areas of planted trees, mixed in with natural forest in a mosaic pattern to promote bio-diversity. The planted trees are primarily teak, paricá, freijó, mahogany and ipe. Albeit teak and mahogany are the most commonly known species, they are all tropical hardwoods used for exclusive furniture, floorboards, veneer and so forth and command high to very high prices on the market due to low supply.
- This plantation does not provide the company with ready-to-cut eucalyptus. However, there are several benefits to this opportunistic deal. We are building this company with a long-term view and the location is very attractive and the valuable hardwood trees serve as our own ”biological bank account” from which we can withdraw, i.e. harvest, when needed, and we get land which can be planted. Further the equity boost is considerable, putting the company in a whole different category both as a contractual counterparty to some of the biggest pulp and paper companies in Europe and in discussion with investment banks, says Andreas Forssell.
An external forest valuation firm has produced a very comprehensive valuation report providing the Board with input for the outlined terms. A full legal due diligence will follow suit. Unless agreed otherwise the LOI will automatically terminate 1 June 2022. The share price of 250 SEK refers to pre-split price as the share split of 1:10 decided at the EGM on March 15, 2022 is still being processed for registration with the Swedish Companies Registration Office.