Mondi Reached Agreement to Sell its Largest Russian Plant

SEATTLE (Scrap Monster): Leading paper and packaging firm Mondi announced sale of its largest plant in Russia. The deal is subject to customary antitrust approvals and approval by Mondi’s shareholders and is expected to be completed in the second half of 2022.

As per the company announcement, Mondi plc has entered into an agreement to sell Mondi Syktyvkar, together with two affiliated entities to Augment Investments Limited for a consideration of 95 roubles or $1.6 billion, payable in cash upon completion. It must be noted that Augment Investments Limited is being owned by Russian billionaire Viktor Kharitonin.

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The assets under the transaction does not include a cash balance of RUB 16 billion. The net proceeds from the sale transaction along with the RUB 16 billion will be distributed to Mondi’s shareholders. Further to this transaction, Mondi now owns three smaller plants in Russia that are not part of the deal. The company had decided in May this year to divest its Russian assets, after assessing all possible options.

Mondi Syktyvkar integrated pulp, packaging paper and uncoated fine paper mill is located in Syktyvkar, Komi Republic, employing approximately 4,500 people. It had reported revenues of €821 million, EBITDA of €334 million and profit before tax of €271 million in 2021.