OREANDA-NEWS. May 31, 2011. RusForest AB has acquired the outstanding minority stakes in its Ust Ilimsk based subsidiaries LLC RusForest Ust Ilimsk and LLC PIK-2005.

The acquisitions were carried out by way of an issue in kind of a total of 847,645 RusForest shares to the previous owner in accordance with the authorisation to issue shares granted to the Board by the EGM held on 15 April 2011. The issue is subject to registration with the Swedish Companies and Registration Office, as the company said in a press release received by Lesprom Network.

In a previous step, RusForest had increased its shareholding in the acquired companies from 80% - 90% under a settlement agreement in 2009. As a result of the present acquisitions, all of the Company's Siberian assets are now wholly owned.

Following the registration of the issue in kind, the total number of shares in RusForest will amount to 95.8 million and the share capital will amount to SEK 958 million (USD 15.2 million).

RusForest is forestry and sawmilling company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long term forest leases with an annual allowable cut of approximately 2.8 million cubic metres, and utilizes these resources to produce a wide range of sawnwood products.