An acquisition-hungry energy company has made an offer for the troubled Swedish sawmiller and forestry company Rörvik Timber.
Rörvik, which has 10 sites in southern Sweden, filed for bankruptcy protection a year ago and after refinancing its debts launched a rights issue that closed last week which was substantially oversubscribed.
Meerwind AB acquired first 11% then 42% of Rörvik from a Swedish investment company before launching the full bid last week. Meerwind is part of a business that owns the US-based Gunvor Group, which claims to be one of the world’s largest independent energy traders.
Although its activities have focused on oil, in recent years the business has expanded internationally and diversified into other forms of energy with the aim of becoming an integrated global energy group.
The Rörvik board said it is considering the cash offer, but has noted that the offer price of SKr0.67 per share is lower than the closing price of SKr1.55.
Rörvik has been struggling since debt created by capital investment begun in 2006 and a big drop in prices forced the company to reorganise in April 2009. It reached agreement with its banks on refinancing and a rights issue to realise SKr250m closed last week oversubscribed by 48%.
