RusForest AB completes acquisition of NTG

May 02, 2011. /Lesprom Network/. RusForest AB has completed the acquisition of Nord Timber Group ("NTG") by way of an issue in kind of 29,437,529 RusForest shares in exchange for shares in and claims against the companies included in the NTG group. The new issue is subject to registration with the Swedish Companies and Registration Office, as the company said in a press release received by Lesprom Network. Through the acquisition of NTG, RusForest controls an annual allowable cut (AAC) of approximately 2.8 million cubic metres - positioning the Company as one of the largest forest-controlling companies in Russia in terms of cutting rights. As the Company's AAC in the Arkhangelsk region now amounts to just under 1 million cubic metres - which is enough to cover the future raw material requirements of the sawmill at LDK-3 - the planned production capacity in the region can be increased. As a result, RusForest will be established as a true global player, with a sawn wood output expected to grow over the next 4-5 years to around 800,000-850,000 cubic metres per annum, backed up by 2.7-2.9 million cubic metres of annual harvesting from the Company's own forest leases. NTG is a forestry and sawmilling company with large forestry assets located in the Arkhangelsk region in North-Western Russia. NTG has forest leases exceeding 1.1 million hectares containing high quality Spruce and Pine resources similar to those found in northern Sweden. Additionally, NTG owns a sawmill in the region, which is being upgraded to reach an annual capacity of 80,000 cubic metres, and a planing mill in the city of Arkhangelsk. 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.