Mondi has found a new buyer for the company's Syktyvkar mill in Russia. "Exit from Russia" expected to be completed by the end of the year.
Mondi has entered into an agreement to sell Mondi Syktyvkar to Sezar Invest LLC for a total cash consideration of RUB80bn (approximately €775m). The disposal was already approved by the Russian Federation’s Federal Anti-Monopoly Service and the Government Sub-Commission for the Control of Foreign, and the company has been informed that were no further outstanding regulatory conditions in respect of the disposal, Mondi announced.
Mondi Syktyvkar in an integrated pulp and containerboard and fine paper mill with an installed capacity of 1.2 million t. The business employs approximately 4,500 people and reported sales revenues of approximately €1.1bn for 2022. Sezar Invest is a subsidiary of Moscow based real estate development company Sezar Group.
According to Mondi, the total cash consideration will be paid to Mondi in Russian currency and in six monthly instalments. The first four monthly payments will be for RUB13.5bn each, with the first payment made by the end of September 2023. "Once the first four monthly instalments have been paid to Mondi, expected to be by the end of December 2023, the disposal will complete and ownership of Mondi Syktyvkar will transfer to Sezar Invest and, accordingly, Mondi will have completed its exit from Russia," Mondi announced. The final RUB26bn will be paid in two equal instalments in each of the two months post completion.
Mondi had already completed the disposal of its converting operations in Russia last July. The three packaging facilities were sold to Russia's Gotek group for a total consideration of RUB1.5bn in mid-2023. A previous attempt to sell the Syktyvkar business to Augment Invest for RUB95bn had failed due to lacking approval Russia's competent authorities.
