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JSE-listed packaging and paper producer Mondi said on Monday it had reached an agreement to sell its most significant facility in Russia, Mondi Syktyvkar, and two affiliated entities for about €775 million (about R15.7 billion).
The group said on Monday both the Russian Federation’s Federal Anti-Monopoly Service and Government Sub-Commission for the Control of Foreign Investments approved the disposal to Sezar Invest, with funds to be paid in six instalments - the first to be made by the end of September.
Once the first four instalments have been paid, expected to be at the end of December, the disposal will be complete, with the final two expected post-completion.
Mondi announced in May 2022 that it planned to divest from Russia - which accounted for about a fifth of its core profit - a move which followed in the wake of that country's invasion of neighbour Ukraine.
In August 2022, the group entered into an agreement to sell Mondi Syktyvkar and two affiliated assets for €1.2 billion (almost R25 billion) to Augment Investments. The sale included an integrated pulp, packaging paper, and uncoated fine paper mill located in Syktyvkar in the Komi Republic, which is about 1 000km northeast of Moscow.
However, in June, the group announced that this sale had fallen through, citing a lack of progress in gaining necessary approvals.
READ | Mondi's R25bn sale of Russia's largest paper producer falls through
On Monday morning Mondi's shares were trading almost 4% higher and have gained about 12% over the past one year.
