Metsäliitto Group has become the majority shareholder of Metsä-Botnia after concluding a share purchase agreement with UPM.

Metsä-Botnia’s Uruguay functions included in the agreement comprise the majority holdings of the Fray Bentos pulp mill and Forestal Oriental, a company specialising in eucalyptus cultivation. The group also includes the 200,000m³ sawn softwood capacity Svir Timber sawmill in Russia.

Metsäliitto now owns about 53% of Metsä-Botnia, M-Real about 30% and UPM about 17%. As part of the arrangement, Metsä-Botnia sold 77% of its shares in Pohjolan Voima Oy to UPM.

The arrangement’s net cash impact for Metsäliitto is approximately €110m negative. The total debt-free enterprise value of Metsä-Botnia without its Uruguay operations and Pohjolan Voima Oy shares was agreed at approximately €1.9bn.