Mondi announces agreement to sell Mondi Syktyvkar

Mondi plc (“Mondi” or the “Group”) today announces that it has entered into an agreement to sell its last remaining facility in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities (together “Mondi Syktyvkar” or the “Business”) to Sezar Invest LLC (“Sezar Invest”) for a total cash consideration of RUB 80 billion (approximately €775 million at the current exchange rate) 1 to be paid in a series of instalments as set out below (the “Disposal”).

Mondi confirms that both the Russian Federation’s Federal Anti-Monopoly Service and Government Sub-Commission for the Control of Foreign Investments have approved the Disposal on the terms agreed between Mondi and Sezar Invest. Mondi also confirms that it has been informed that there are no further outstanding regulatory conditions in respect of the Disposal.

The total cash consideration of RUB 80 billion will be paid to Mondi in RUB and in six monthly instalments. The first four monthly payments will be for RUB 13.5 billion each, with the first payment made by the end of September 2023. Once the first four monthly instalments have been paid to Mondi, expected to be by the end of December 2023, the Disposal will complete and ownership of Mondi Syktyvkar will transfer to Sezar Invest and, accordingly, Mondi will have completed its exit from Russia.

The final RUB 26 billion will be paid in two equal instalments in each of the two months post completion. These payments will be secured by a letter of credit issued to Mondi prior to completion.

The Business employs approximately 4,500 people and is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.
https://www.mondigroup.com/media/17001/mondi-announces-agreement-to-sell-mondi-syktyvkar.pdf

Related Posts

Holmen’s interim report January-June 2017

Operating profit for January–June 2017 was SEK 1 152 million (January–June 2016: SEK 1 063 million, excluding items affecting comparability). The improvement in earnings was due to higher wood product prices, better earnings from forests and the divestiture of the newsprint mill in Madrid. Compared with the first quarter, operating profit decreased by SEK 102 million to SEK 525 million as a result of a maintenance shutdown within paperboard and seasonally lower hydro power production. Profit after tax for January–June amounted to SEK 880 million (587), which corresponds to earnings per share of SEK 10.5 (7.0). Return on capital employed increased to 9.4 (8.4) per cent. Production of paperboard, paper and wood products has been established at a higher level than previous years and the sales mix has developed well. Cash flow was strong and largely covered the SEK 1 billion dividend that was paid in April.

AF&PA Targets Trade, Transportation, Paper-Options Safeguards and Regulatory Reform Among Top 2018 Advocacy Priorities

The American Forest & Paper Association (AF&PA) announced its top 2018 advocacy priorities that include free and fair trade, transportation efficiencies, regulatory process reforms and government policies that respect market dynamics for paper-based products. The association will pursue them as it supports the pulp, paper, packaging and wood products industry’s ability to grow the economy and create American manufacturing jobs. “Enactment of historic comprehensive tax reform sets a welcome stage for AF&PA to focus on key 2018 advocacy priorities that will further our industry’s ability boost the economy and create jobs and opportunity for all Americans,” said AF&PA President and CEO Donna Harman. “Free and fair trade policy, efficient transportation measures, systemic regulatory process reforms and policies that respect market place competition and consumer choice for paper-based products rank high on our list. We are eager to continue working with the Administration and Congress and state governments to advance shared goals that will open the door for our companies to invest, innovate and compete at home and around the globe. With more than 900,000 employees in rural and urban communities across 45 states, we are one of the largest manufacturing sectors in the nation with an ability to thrive with the support of forward-thinking public policy.” Click Read More below for additional information.

Maple Syrup Producers Share Sweet Partnership with Windsor Mill

Domtar is working to build circular economies at each of our mills. In the past several years, the Windsor Mill has gone to great lengths to close its sustainability loop and nurture the forests that support its operations and the people that live and work in the surrounding area. That includes a partnership with local maple syrup producers. The Windsor Mill is one of Canada’s last fully integrated pulp and paper mills, which means it owns forestland — 400,000 acres of it — to support its operations. The mill manages its forests for multiple uses, selectively harvesting trees about once every 20 years. The mill has developed partnerships for the forests to benefit the larger community during the two decades of growing time. One of these partnerships was formed in 2016 to allow local maple syrup producers to harvest sap from the large stands of sugar maples that dominate the land. Since starting its partnership with local syrup makers like Simon Bellegarde five years ago, the Domtar forest’s more than 140,000 taps have yielded enough tree sap to make about 33,000 U.S. gallons of maple syrup each year.
Back To Top
×Close search
Search