Södra has reached an agreement to divest its shares in Sunpine AB to VAROPreem. The transaction is pursued together with shareholders Sveaskog AB and Lawter B.V., a subsidiary of Harima Chemicals Inc., and is now undergoing the necessary approvals before it can be completed.

Södra has been a partner in Sunpine since 2008 with a 25% ownership stake, to drive the development and market of renewable products based on tall oil, an important part of the strategy to make more of each tree and thereby increase the profitability of its members' forests. Sunpine is now entering a phase that requires a different type of ownership and expertise, which is why Södra has decided to sell its ownership stake to an investor who can take the company forward.

"Sunpine is now entering a new phase where our business assessment is that another owner can better support the company taking the next step. Our purpose of driving the development and market for tall oil has been accomplished, so for Södra, this decision and the agreement is about focusing our resources where they add most long-term value to our member's forests", says Lotta Lyrå, President and CEO of Södra.

Following an offer from a third party, VAROPreem exercised its right of first refusal and will acquire all outstanding shares in the Company. The transaction will be completed after the necessary approvals and the impact on Södra's financial results will be reported in the first half of the year.

Södra's tall oil business continues to be a vital part of the product portfolio, with a focus on high-quality production and delivery to customers.