”The decision of this divestment is logical as Setra Vimmerby is not particularly integrated with Setra’s other production units as regards market concept and supply of raw material”, says Hannele Arvonen, president and CEO of Setra.
According to the agreement, Bergs Timber acquires all fixed and current assets at Setra’s unit in Vimmerby, net of certain operating liabilities, primarily consisting of personnel-related liabilities. The final purchase price is determined based on current booked values at the time of transfer.
The payment will be made partly in cash and partly in newly issued shares in Bergs Timber. 11 million shares will be issued in total, which after the transaction gives Setra ownership of approximately 6 percent of Bergs Timber.
The transfer to Bergs Timber is expected to take place on January 9, 2017. Completion of the transaction is subject to the parties entering a final transition agreement for certain administrative services from Setra to Bergs Timber for a period, final negotiated financing with Bergs Timber’s financing bank, the transfer of official permits to Bergs Timber, and the agreement between Setra and Neova El & Värme AB regarding the operation of the boiler at the sawmill being transferred to Bergs Timber.
Setra Vimmerby, which is one of Setra's twelve production units, is located only 40 kilometres from Bergs Timber's facility in Mörlunda, and has some 50 employees.