Friday, 22 September 2023 12:11 GMT

Mondi finalizes sale of last plant in Russia

(MENAFN) UK paper and packaging company Mondi has confirmed its exit from Russia by finalizing a deal to sell its sole remaining plant in the country. In an announcement made on Sunday, Mondi disclosed that it had reached an agreement to sell its Syktyvkar pulp and paper mill to a subsidiary of Moscow-based real estate developer Sezar Group for a sum of 80 billion rubles (USD825.7 million). The Syktyvkar factory is involved in the production of uncoated fine paper and containerboard primarily for the Russian domestic market and has approximately 4,500 employees. Its reported revenue at the end of 2022 stood at around USD1.16 billion.

"Mondi 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, to Sezar Invest LLC for a total cash consideration of RUB 80 billion to be paid in a series of instalments," stated the announcement.

Mondi has received the necessary approvals from Russia's anti-monopoly authority and the government body responsible for foreign investments for this transaction, as per the company's statement. The sale is anticipated to be finalized by December.

Previously this year, Mondi had sold its three packaging conversion plants situated in Russia to Gotek Group for a total of USD16.5 million.


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