A deal between investment group Bonum Capital and Russian forestry major Segezha will create the largest forestry assets holder in Russia, with five times more land than its closest public peers. The M&A will also make Segezha the second largest sawn timber manufacturer in Europe, bringing it into the list of top 10 global players in the industry.
Segezha Group’s President, Mikhail Shamolin, said: “The ability of Segezha Group to make a deal of this size demonstrates that it is the only public company in the Russian market in a strong enough position to consolidate Russia’s forestry assets. Our wealth of experience in integrating assets into an effective business model facilitated this, as did our history of investing in the technological transformation of assets.”
He also stressed that the deal was an important step towards the fulfilment of the promises made to investors by the group during its IPO earlier this year.