The Swedish "Bergvik Skog" mountain, purchased by the Swedish forest sector Södra, the Latvian State Forests (LVM), and the prices of Latvian companies are too high, said Arvids Ozols, director of the Ministry of Agriculture (ZM).
He said LVM could not use these funds given that the dividend payments on state budgets are not reduced.
"Eventually, it was a matter of price suggestions," Ozols said, explaining why LVM did not own the Bergvik Skog production area in Latvia.
At the same time, he added that the Bergvik Skog forestry company and the companies in Latvia have already acquired "Södra", one of the leading European forestry companies operating in Latvia, so the Ministry of Agriculture no longer cares about forest management.
LETA's LVM representative also acknowledged that Bergvik Skog's forest property and company selling prices far outstripped LVM's price cap. The company confirmed that LVM was Bergvik Skog, one of the forest owners and business buyers, and has begun a purchase proposal.
"The final transaction price has significantly exceeded the price cap set by LVM, which is designed to take into account future cash flows and social responsibility, eco-friendly and sustainable forest management to increase the value of forest property in the long term. And that the future conditions of forest management depend on the price proposition, "LVM pointed out.
LVM congratulated Bergvik Skog and Södra on successful trading. "The Latvian forest sector currently sees a genuinely experienced and responsible forest owner who has entered the Latvian forest owner list," LVM said.
The LETA agency has already reported that Sweden's Bergvik Skog sold the Swedish forest property and company to Södra, Sweden on Tuesday, Sweden, and handed over the Bergvik Skog and Ruda business to Latvia with all the employees under Södra's responsibility. Bergvik Skog sold 111,100 hectares of land, of which 80,300 hectares are productive forest land. The transaction amounted to 322 million euros.
The Latvijas Avīze newspaper said that interest in acquiring Latvian forests in Sweden's "Bergvik Skog" has been proven by 20 companies, including three in Latvia. This land was going to be sold at the end of this year.
Previously, it was mentioned that "Latvian national forest" was interested in property acquisition.
"Firmas.lv" shows that in 2017 "Bergvik Skog" sales were € 244 million, but the company made € 275,931.
The company was registered in 2003 and its capital is EUR 106,025 million. The company is owned by the Swedish company Bergvik Skog.
The Swedish "Södra" in Latvia has its subsidiary "Sorda meži". According to the Sodra website, the company has invested in forests for a long time in the Baltic states and has owned forests in Latvia since 2006.