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13 Nov 2003 Real estate sale in Norway Norske Skog is selling 1.35 million decare (approximately 337,000 acres) of forest properties in Norway. The buyer, Kiær Mykleby, is involved in forestry and forest-related business activities in the Stor-Elvdal municipality. The buyer is also active in the development and management of smaller hydroelectric power stations. Norske Skog has accepted an offer of NOK 153 million for the forest property, located in Namdalen and Verran. The book value is NOK 20 million. Therefore, the gain from this sale for Norske Skog is NOK 133 million. The transaction will be reflected in the books as soon as the application for concession is concluded.
- We are very satisfied with the outcome. This completes Norske Skog's era as a forest owner. I am certain that the new owner will develop and manage the land accordingly, based on its potential, says Jan Reinås, CEO.
The new owners, Anne Ulvig and Anders Kiærs, will operate the majority of the land as one unit, and sell off a considerable number of parcels to local forest owners and other interested parties. Kiær Mykleby also sees the potential for the development of smaller electrical energy stations in Grong and Namsskogan.
Norske Skog was Norway's largest private forest owner, but in 2001, sold large portions of forest properties in southern Norway and Sweden. The sale of properties in Namdalen and Verran were put on hold, as an acceptable price could not be agreed upon.
Over the past three years, the company has sold over NOK six billion of the forest operations. This follows the company's strategy to focus on core activities, the production and sales of publication paper.
Oxenøen, November 13, 2003
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