Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Packaging And Design

Mondi To Sell Its Largest Russian Plant For €1.5bn

By Dayeeta Das
Share this article

British paper and packaging firm Mondi has agreed to sell its largest plant in Russia to an investment vehicle owned by Russian billionaire Viktor Kharitonin for RUB 95 billion (€1.5 billion).

Mondi's London-listed shares jumped more than 7% on the news on Friday, as it said it would distribute the proceeds from the sale of Mondi Syktyvkar to shareholders.

Mondi also has three much smaller plants in Russia that are not affiliated to Syktyvkar and not part of this deal with Augment Investments, it said.

It plans to divest those as well after it explored all options for its interests in Russia following the Ukraine war.

Many Western companies have suspended Russian operations or left the country completely following Moscow's invasion of Ukraine, which has complicated doing business there.

ADVERTISEMENT

Conditional Deal

The deal is conditional on approval by the Russian government and Mondi shareholders, who will receive a dividend from the proceeds, the company said.

It is expected to close in the second half of 2022, Mondi said.

Mondi's Syktyvkar, a pulp, packaging paper and uncoated fine paper mill located in the capital of the Komi Republic, employs about 4,500 people and generated revenues of more than €821 million ($845 million) last year.

The packaging giant reported a ‘strong’ performance across the business in the first half of its financial year, with EBITDA up by 65%, year on year, to €1.2 billion, including its discontinued Russian operations.

News by Reuters, edited by by ESM – your source for the latest packaging news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days