Major forestland acquisition in Latvia

Following a share purchase agreement signed just a month earlier, on 13 December 2024 a highly regarded client of Ellex in Latvia closed the transaction that involved acquisition of over 8000 hectares of forestlands, situated in various parts of Latvia. The transaction involved acquisition of shares of two Latvian companies owned by a Swedish public investment fund.

The transaction value and details are confidential.

By investing into Latvian high-value forests, client’s intention is to strengthen its commitment to responsibly manage, maintain and harvest raw material sources for its business needs. The client is committed to ensure that as a result of the transaction its activities foster a positive contribution to the environment and local economies, in close collaboration with local businesses and communities. The acquisition also provides the client an opportunity to explore how innovative forest management practices can enhance climate resilience and biodiversity.

Both acquired companies were previously owned by a Swedish public investment fund.

Although the jurisdiction of the agreement itself is Swedish, Ellex advised the client on all Latvian jurisdiction aspects of the transaction, including the legal due diligence, structuring, negotiations, reviewing of the share purchase agreement, analysis of the regulatory matters etc.

The client was advised by Ellex experts in Latvia: Senior Partner Filips Klavins, Senior Associates Inese Freivalde and Ints Skaldis and Associate Eliza Semkina.