18th Sep 2023 07:58
(Alliance News) - Mondi PLC said on Monday it had agreed to sell its most significant facility in Russia to Sezar Invest LLC for around RUB80 billion, or about EUR775 million.
The Weybridge, England-based paper and packaging firm early in June ended its plan to sell this facility, called JSC Mondi Syktyvkar, to Augment Investments due to lack of progress in gaining regulatory approvals in the country.
In a statement on Monday, Mondi confirmed that both the Russian Federation's Federal Anti-Monopoly Service and government sub-commission for the control of foreign investments had approved the deal between Mondi and Sezar Invest, a subsidiary of Moscow-based real estate development company Sezar Group.
It also said there were no further outstanding regulatory conditions regarding the disposal.
Mondi said it will return proceeds from the Mondi Syktyvkar sale to its shareholders.
The disposal of Mondi Syktyvkar, the pulp and paper mill, will complete Mondi's exit from Russia.
Back in July, Mondi sold its three Russian packaging converting operations to Gotek Group for EUR30.4 million, or ZAR623.2 million.
Mondi first announced in March last year it was assessing all options for its interests in Russia after Moscow launched an invasion of Ukraine the previous month.
On the Sezar Invest transaction, Mondi said on Monday the total cash consideration of RUB80 billion will be paid in six monthly installments.
The first four monthly payments will be for RUB13.5 billion each, with the first payment made by the end of this month.
Once the first four monthly installments has been paid to Mondi, the disposal will complete and ownership of Mondi Syktyvkar will transfer to Sezar Invest,
The final RUB26 billion will be paid in two equal installments in each of the two months post completion.
By Artwell Dlamini, Alliance News reporter
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