Latvian Forest Company AB is a publicly traded, Swedish limited liability
company that offers private individuals and legal entities the opportunity
to invest in favorably valued forest property in Latvia.
Interim report Jan-June 2020
Period January-December 2019
Minutes kept at the Annual General Meeting of Latvian Forest Company AB (publ), org. 556789-0495, at 10.00, Monday, December 16, 2019 in Stockholm.Read more
Shareholders wishing to participate in the Meeting shall be included in the share register kept by Euroclear Sweden AB ("VPC) and report their participation no later than Wednesday December 11, 2019.Read more
Parts of the acquisition have already been taken up and the remaining shall be taken later.Read more
LFC informs that its past CEO and board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB regarding profit sharing corresponding to EUR 378,500.Read more
All shares in the subsidiaries have been sold, leading to a surplus of 10,803 TEUR
Today, Monday, July 1, 2019, is the record day to receive a dividend. According to a resolution of the Annual General Meeting dividend to the shareholders shall be paid EUR 0.54 per share or a total of EUR 11 075 973.Read more
Book value of fixed assets amounts to 24,733.2 (21,924.3) TEUR
Notice of the Annual General Meeting of Latvian Forest Company AB (publ).
Shareholders of Latvian Forest Company AB (publ), org. No. 556789-0495, (the "Company") is hereby invited to the Annual General Meeting on Thursday, June 27, 2019, at 10:00 a.m. in Galjaden Fastigheter's premises on Linnégatan 18 in Stockholm.Read more
LFC informs that Chairman of the Board, Ted Alvenius, is of a different opinion than the remaining Board of Directors regarding a transaction involving compensation for value increase in connection with the sale of all shares in the operating subsidiaries.Read more
Galjaden Invest AB has increased its holding in Latvian Forest Company AB to 20.03%.Read more
Latvian Forest Company has, in accordance with a resolution at the Extraordinary General Meeting on March 27, 2019, completed the sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.Read more
Nils Robert Persson has increased his holding in Latvian Forest Company AB.Read more
Latvian Forest Company AB (publ) held the Extraordinary Annual General Meeting on March 27, 2019. The meeting resolved on the sale of all shares in the operating subsidiaries SIA Latvijas Mezu Kompaniju and Baltic Forest IV SIA to SCA Mezs Latvija, SIARead more
The shareholders of Latvian Forest Company AB (publ), Reg. No. 556789-0495 ("The Company") are hereby summoned to the Extraordinary General Meeting of shareholders to be held on Wednesday, March 27, 2019 at 10.00 in Galjaden Fastigheter premises on Linnégatan 18, Stockholm.Read more
LATVIAN FOREST COMPANY SIGNS SHARE TRANSFER AGREEMENT WITH SCA MEZS LATVIARead more
Latvian Forest Company AB signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the company’s operations by way of sale of all shares in the operating subsidiaries SIA Latvijas mezu kompanija and Baltic Forest IV, SIA. The total sale price is estimated to 26 000 000 Euro.Read more
We at Latvian Forest Company are proud supporters of orienteering in Latvia.Read more
Bronsstädet AB (556612-1124) has purchased 1.878.616 B-shares in Latvian Forest Company AB (publ). The ownership, after purchases, corresponds to 14.81 percent of capital and 14.01 percent of votes which makes Bronsstädet AB the largest shareholder in Latvian Forest Co.Read more
Following the completion of its due diligence analyses, the Latvian Forest Company AB has decided to complete the previously announced acquisitions.Read more
The market for forest property in Latvia primarily consists of many small plots of land between 5 and 40 hectares in size. The properties are usually distributed amongst many individual owners that have their origins in the re-distribution of property that was carried out after the fall of the Soviet Union. Many of the properties now for sale have their origins in this privatization process.
Generally speaking, the larger and more geographically concentrated property holdings are, the higher they are valued. The large forestry companies do normally not engage in the purchasing of smaller plots of land. They are primarily interested in purchasing larger holdings, but at a higher price.
Latvia’s total surface area is 64.6 thousand square kilometers. Approximately 52 percent of this is made up of forest which corresponds to approximately 3,04 million hectares. The largest individual owner is the Latvian State. (2018. Year information)
Property prices increased continuously until 2008 only to fall during the economic crisis of 2008-2009. The prices are dependent on the condition of the specific property as well as the timber volume, but in general the Latvian prices are 10-30 percent of the Swedish ones
The two main differences between the markets in Sweden and Latvia are that Sweden has a better infrastructure and that the forest has been more actively managed in Sweden. In many cases little or no management whatsoever has taken place.
The assessment, however, is that the differences in infrastructure and lack of management does not motivate the differences in property prices as they exist today.
Another important factor to consider is that in many properties also include agricultural land. This land is often of good quality and generates cash flow by means of EU-subsidies. Price levels for agricultural land are also well below what is common in Sweden and it is expected that they have a similar potential for increases in value as forest land.
Individual properties usually have a lower price than larger property packages. Property packages are considered more attractive for larger buyers such as forest companies, larger investors and institutional capital such as pension funds etc. Latvian Forest Co has, as an integrated part of its strategy, the ambition to create packages that can be attractive for these types of investors.
Operations are dependent on the development on the international timber market in such way that the turnover generated is directly related to the prices that can be received for sold timber. Income is usually generated in connection with harvesting, thinning or other activities.
The timber prices are also reflected in property prices. These are, however, affect more by future expectations rather than short term fluctuations in timber prices. The timber market is per definition international and the prices are only to a lesser extent affected by local factors.
In summary, the product, i.e. sawlogs, pulpwood and energy wood, can be sold for similar prices as in Sweden, but the input value, i.e. the price per cubic meter at the time of purchase of forest land, is much lower. Profitability per sold cubic meter is thus significantly higher.