In order to further develop the Group’s two operations, SCA had decided to divide into two divisions: a hygiene division and a forest products division.

“For the Annual General Meeting 2017, the Board of Directors plans to present a proposal for the distribution and listing of the company's hygiene business,” says Pär Boman, Chairman of the Board of Directors of SCA.

According to a press announcement, the split of SCA into two listed companies is the best way to continue to create shareholder value, customer benefits and further development opportunities.

An evaluation, mainly based on value creation and flexibility for the shareholders, has been made of various methods and structural alternatives to achieve a complete split of the two businesses into two independent companies. The conclusion is that a distribution and listing of SCA's hygiene business will create more shareholder value and incur relatively low transactional risk and relatively low transaction costs.

Prior to the Annual General Meeting 2017, the Board of Directors plans to present a proposal for the distribution and listing of the Group's hygiene business. The distribution is proposed to be made to the shareholders in proportion to their holdings of SCA's Class A and Class B shares. The distribution is expected to meet the requirements of Lex Asea.

If the shareholders decide in favor of the proposal, the plan is to distribute and list the new hygiene company on Nasdaq Stockholm during the second half of 2017. Following a split, there will be two listed companies. One will be a hygiene company including SCA's current business areas Personal Care and Tissue. The second, a forest products company including all forest products operations and all the forest land owned by the SCA Group.

“SCA's leading global hygiene business offers products that make life easier every day for millions of people around the world. An increasing awareness of the relationship between hygiene and health, combined with a growing and aging population, are creating greater demand for hygiene products. Furthermore, SCA is Europe's largest private forest owner and the well-integrated supply chain offers significant synergies and competitive advantages. Forest Products is an efficient and well-invested business,” says Magnus Groth, President and CEO of SCA.

Effective immediately, SCA's Directors appointed by shareholders and CEO, Magnus Groth, have, in addition to current assignments also been appointed the Board of Directors and CEO of the parent company for the hygiene business. The intention is to appoint Ulf Larsson, current President of SCA Forest Products and a member of the Executive Management Team, CEO of the listed forest products company after the distribution of the hygiene business.

Effective immediately, the Board of Directors has also appointed Ulf Larsson, in addition to current assignments, Executive Vice President of SCA.

The intention is that the new listed hygiene company receives a new name and is registered in Stockholm and the forest products company keeps the name SCA and is registered in Sundsvall.