Norske Skog has entered into agreement with Talley's Group, a New Zealand based
dairy, fishing, produce and food company, to sell the Nature's Flame pellets
company for a consideration of approximately NZD 47.8 million (approximately
NOK 280 million). The transaction is expected to close during the first quarter
of 2022.
"Nature's Flame is an excellent company producing high quality and sustainable
energy pellets from wood residues, and thus the sales process generated
significant interest. Under our ownership, we have expanded the capacity from
producing some 20,000 tonnes when acquired to currently 90,000 tonnes, and we
are very pleased that Talley's has indicated interest to continue the ongoing
project to further expand the capacity to 150,000 tonnes. This will support the
ongoing decarbonisation of New Zealand industries by transitioning from fossil
coal energy to renewable energy like wood pellets. Following the closure of the
Tasman mill in 2021 and the sale of the Nature's Flame business, the Boyer
industrial site at Tasmania is now our only operational asset in the region. The
Boyer industrial site will continue to service the regional publication paper
markets and develop its industrial footprint within energy and bio products",
says Sven Ombudstvedt, CEO of Norske Skog.
Norske Skog acquired the Nature's Flame business in 2015 for a consideration of
NZD 6.7 million, and has invested an additional NZD 7.8 million to expand the
capacity to 90,000 tonnes. The sale is expected to close during the first
quarter of 2022. The sale consideration of approximately NZD 47.8 million
(approximately NOK 280 million), subject to customary closing conditions, will
be paid at closing and will result in a book value gain of NOK 150-200 million.
The sale follows a broad and structured process with high interest from both
local and international parties. Nature's Flame contributed approximately NZD
5.0 million (approximately NOK 30 million) to Norske Skog's EBITDA over the last
twelve months as of the third quarter of 2021. The sale further strengthens
Norske Skog's balance sheet and liquidity position in relation to ongoing
strategic projects within energy and packaging paper.
About Norske Skog
Norske Skog is a leading industrial company within publication paper, packaging
paper, energy production and bio products. The Group owns and operates four
industrial sites in Europe, and one industrial site in Australasia. Sustainable
and safe operations is at the core of all business activities. The Group has
approximately 2,150 employees, is headquartered in Norway, and listed on the
Oslo Stock Exchange under the ticker NSKOG.
About Talley's Group
Talley's Group Limited is a privately owned, New Zealand-based agribusiness
company that provides seafood, vegetable and dairy products across a number of
divisions and brands.
Norske Skog
Communications and Public Affairs
For further information:
Norske Skog media:
Vice President Communication and Public Affairs
Carsten Dybevig
Email: carsten.dybevig@norskeskog.com
Mob: +47 917 63 117
Norske Skog investor relations:
Investor Relations Manager
Even Lund
Email: even.lund@norskeskog.com
Mob: +47 906 12 919