Global sustainable packaging and paper company Mondi has completed the sale of its three Russian packaging converting operations to Russian packaging producer Gotek Group.
The latest announcement comes months after the UK-based packaging company signed an initial agreement with Gotek to sell some of its packaging converting operations, including one corrugated solutions plant and two consumer flexibles plants, in Russia.
The three packaging converting assets, Mondi said, specialise in manufacturing and will deliver a wide range of packaging solutions to address the demands of the domestic Russian market.
Signed in December 2022, this transaction was valued at Rbs1.6bn ($17.85m).
Mondi has confirmed that Gotek has successfully received all the requisite approvals for the sale and the deal is now officially complete.
According to Mondi, so far it has received net proceeds of €30.4m ($33.1m) from this sale into its Austrian bank account.
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These net proceeds will now be distributed to Mondi’s shareholders.
Mondi clarified that the previously proposed disposal of its Syktyvkar pulp and paper facility in Russia is not related to this sale deal with Gotek.
Last month, Mondi decided to withdraw from an agreement to sell its Syktyvkar mill and two affiliated entities in Russia to Augment Investments, an investment vehicle majority owned by Russian billionaire Viktor Kharitonin, citing a “lack of progress”.
This deal was valued at approximately Rbs95bn.
The British company said its board is still committed to divesting the Syktyvkar unit and is currently considering all the available alternatives in order to divest the facility.