British packaging company Mondi has confirmed receiving the full payment for the previously announced divestment of its Russian business to Moscow-based real estate developer Sezar Group.
The deal, which was completed on 4 October 2023, marked Mondi’s official exit from the Russian market.
The transaction involved the sale of Mondi’s joint stock company Mondi Syktyvkar for a total cash consideration of Rbs80bn ($870m).
At the time of the deal’s completion, Mondi said it had only received Rbs57bn of the total Rbs80bn into its London bank account and was yet to receive the remaining Rbs23bn in aggregate.
The UK-based paper and packaging company has now confirmed that it has received the remaining Rbs23bn in two instalments, one procured in November and the other in December.
Mondi Syktyvkar is located in Russia’s Komi Republic. It is an integrated pulp, packaging paper, and uncoated fine paper facility.
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The plant, which supported approximately 4,500 employees, mainly aimed to meet the requirement of uncoated fine paper, as well as containerboard in the Russian market.
Apart from Mondi Syktyvkar, the company also completed the sale of its three packaging converting businesses in Russia to Russian conversion manufacturer Gotek Group in June this year.
This Rbs1.6bn deal between Mondi and Gotek was first signed in December 2022.
The net proceeds received from this transaction will be distributed to Mondi’s shareholders through a special dividend with related share consolidation. It is currently subject to receipt of approval from shareholders.
If approved, the company said its special dividend is expected to be paid, along with the share consolidation to take effect, in the first quarter of next year.