OREANDA-NEWS. July 07, 2014. SORAINEN Estonia advised Metsaliitto Cooperative, the parent company of Metsa Group, on the divestiture of the entire share capital of its subsidiary Metsa Wood Eesti to the Estonian Combimill.

Simultaneously with the transaction, the parties have agreed on commercial cooperation in raw material procurement as well as by-product and sawn timber sales. The transaction will not have a significant impact on Metsa Wood's financial results.

"This arrangement is in line with Metsa Wood's strategy of industrial efficiency and investment in resources in the continuous development of the competitiveness and productivity of Metsa Wood's core business", said Esa Kaikkonen, Executive Vice President of Metsa Wood, commenting on the transaction.

Metsa Wood Eesti is the Estonian subsidiary of Metsa Wood and its sawmilling activities are located at the production unit in Reopalu, Jarva County, central Estonia. The annual capacity of the Reopalu sawmill is 75,000 m3 of spruce timber. Turnover of Metsa Wood Eesti amounted to approximately EUR 16 million last year and the company employs 38 people. Combimill is a prominent Estonian producer of pine sawn timber with a production facility located in Koidama, Estonia.

SORAINEN advice includes transaction advice, coordination of merger clearance notification and closing support.

The client is advised by partner Toomas Prangli, specialist counsel Kadri Kallas and senior associate Paul Kunnap.