Mondi sells Russian Syktyvkar paper mill for €1.5 billion

On August 15, Mondi plc announced that it has transferred two subsidiary entities (together, ” Syktyvkar “) to Augment Investments Limited for a consideration of 95 billion rubles (approximately €1.5 billion at current exchange rates), payable in cash on completion. Paper Cup Fan 6oz

The sale is subject to the approval of the Sub-Committee on Foreign Investment Control of the Government of the Russian Federation and antimonopoly approval. The sale is also subject to the approval of Mondi’s shareholders at a general meeting of shareholders.

The Syktyvkar assets to be transferred to Augment as part of the proposed sale do not include a cash balance of 16 billion rubles (approximately EUR 255 million at current exchange rates). The cash balance is scheduled to be distributed to Mondi in the form of a dividend prior to completion.  Sun paper cup fan

The remittance of this dividend requires the approval of the Ministry of Finance of the Russian Federation. The net proceeds of the sale and the dividend of 16 billion rubles will be distributed to Mondi’s shareholders as soon as reasonably practicable after receipt.

The proposed sale follows Mondi’s decision to divest its Russian assets following the announcement on May 4, 2022 of the evaluation of all options for the Group’s interests in Russia. As a result, Mondi initiated a competitive auction process to find a suitable new owner for Syktyvkar.  Paper Cup Fan Raw

Syktyvkar is a wholly owned pulp, packaging and cultural paper mill located in Syktyvkar. the company employs approximately 4,500 people and is a leading supplier of uncoated cultural paper and containerboard to the Russian domestic market.

Mondi Russia also operates three converting mills, which are much smaller and not affiliated with Syktyvkar and are not part of the sale. mondi will issue updates on the divestment of these mills in due course.

The sale is expected to be completed in the second half of 2022. However, the process of divesting these significant assets is operationally and structurally complex and takes place in an evolving political and regulatory environment. As a result, it is not possible to determine when the sale will be completed. Pe Paper Cup Roll

Post time: Aug-22-2022