Mondi Syktyvkar, which is engaged in the production of pulp, packaging paper, and uncoated fine paper, reported revenues of €1.08bn, EBITDA of €481m and profit before tax of €453m for the financial year that ended on 31 December 2022
Mondi agrees to divest Mondi Syktyvkar to Sezar Invest. (Credit: Mondi)
UK-based packaging firm Mondi has agreed to divest its last remaining facility in Russia, Mondi Syktyvkar along with two affiliated entities, to Sezar Invest for a total cash consideration of RUB80bn (€775m).
Mondi Syktyvkar is a fully owned, integrated mill situated in Syktyvkar, which is part of the Komi Republic in Russia.
The facility is engaged in the production of pulp, packaging paper, and uncoated fine paper. It is said to be a significant contributor to the domestic Russian market in terms of uncoated fine paper and containerboard supply. The company employs around 4,500 individuals.
Mondi Syktyvkar reported revenues of €1.08bn, EBITDA of €481m and profit before tax of €453m for the financial year that ended on 31 December 2022.
As of 30 June 2023, the gross assets of the business amounted to €1.107bn and its net assets were €856m.
The deal between Mondi and Sezar Invest has been approved by the Russian Federation’s Federal Anti-Monopoly Service and Government Sub-Commission for the Control of Foreign Investments.
There are no further outstanding regulatory conditions in respect of the sale, confirmed Mondi.
The total deal amount will be paid to the UK-based packaging firm in RUB and six monthly instalments.
The first four monthly payments will be for RUB13.5bn, with the initial payment will be made by the end of this month.
Upon the payment of the first four monthly instalments to Mondi, which is anticipated to occur by the end of December this year, the sale of Mondi Syktyvkar will be finalised. Ownership of Mondi Syktyvkar will be transferred to Sezar Invest at this point, marking the completion of Mondi’s exit from Russia.
The remaining RUB26bn will be disbursed in two equal instalments, with each instalment being paid during the two months following the completion of the initial phase.
To ensure these payments, a letter of credit will be issued to Mondi before the completion of the transaction.
Once all the consideration instalments have been received, it is the intention to promptly distribute the net proceeds from the disposal to Mondi shareholders.
In July this year, Mondi completed the sale of its three Russian packaging converting operations to Russia-based Gotek Group for $17.85m.