15th Dec 2022 10:31
(Alliance News) - Mondi PLC said on Thursday it had entered into an agreement to sell its three Russian packaging converting operations to the Gotek Group for EUR24 million.
But the Weybridge, England-based paper and packaging firm said the loss on the disposal is expected to be in the range of EUR70 million and EUR80 million.
The three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants, producing a range of packaging solutions for the domestic Russian market.
The said is conditional on the approval of the Russian government, warning that there can be no certainty as to when the disposal will be completed, given an evolving political and regulatory environment.
Mondi announced plans to exit Russia, which started invading Ukraine in February.
In August, Mondi entered into an agreement to sell Syktyvkar mill, its most significant facility in Russia, for around EUR1.5 billion.
The disposal is conditional on the approval of Russian government. Furthermore, the planned remittance of the cash balance excluded from the deal of RUB16 billion, about EUR260 million, by form of a dividend to Mondi before completion requires the approval of Russia's finance ministry.
Shares in Mondi eased 1.8% to ZAR307.68 on Thursday in Johannesburg. In London, the stock lost 1.3% to 1,449.00 pence.
By Artwell Dlamini, Alliance News reporter
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