The Copenhagen-based company said potential buyers have already expressed an interest in selected assets at an exploratory level.
This latest move follows years of DLH reorganisation and asset sales which have included selling its UK business to James Latham plc and selling the African forestry and production operations Congolaise Industrielle des Bois (CIB) and Gabonaise Industrielle des Bois (GIB), as well as other operations in Holland, Malaysia and the US.
This has reduced debt from DKr1.3bn to DKr270m. DLH’s statement said its new strategic options for its subsidiaries – including three regional European business units and a global sales division which sells direct to customers, particularly in China and Vietnam – was designed to deliver the greatest possible cash proceeds to company shareholders.
The units have limited synergy between them and are not sufficiently big enough to cover the group’s overheads.
This follows a “thorough analysis” of future options by the management and external consultants against a backdrop of a challenging market for wholesale timber and wood products and an uncertain outlook in the years ahead.
“This is a very difficult decision,” said DLH chairman Kurt Anker Nielsen, who said the plans also involved selling the head office.
“The company has proud traditions, but our view is that the individual business units will have better opportunities to develop under different ownership.”
“Making oneself redundant is a rather unusual situation,” added CEO Kent Arentoft, “but fortunately only a few employees, in addition to the management, will be affected.”
The DLH board will call an extraordinary meeting in January to secure shareholder backing for the new strategy.