LONDON (dpa-AFX) - Mondi Plc (MNDI.L), a British packaging and paper company, said on Friday that it has inked a deal to sell its facility in Russia, joint stock firm Mondi Syktyvkar, together with two affiliated entities to Augment Investments Limited, for RUB 95 billion, or around 1.5 billion euros in cash.
Augment is an investment vehicle majority owned by Viktor Kharitonin, comprising assets in the pharmaceutical and other sectors across Russia, Europem, and the UK.
Syktyvkar is a wholly owned integrated pulp, packaging paper, and uncoated fine paper mill located in Syktyvkar of Komi Republic.
The Syktyvkar assets to be transferred to Augment Investments as part of the proposed sale exclude a cash balance of RUB 16 billion, or around 255 million euros.
The net proceeds from the disposal and the cash balance of RUB 16 billion in the form of dividend are anticipated to be distributed among Mondi's shareholders.
The proposed transaction, expected to be closed in the second half of this year, follows the UK-based firm's previous decision to divest its Russian assets.
For the year ended December 31, 2021, Syktyvkar had posted a pre-tax profit of 271 million euros, with an EBITDA of 334 million euros, on revenues of 821 million euros.
Mondi also operates three converting plants in Russia, which are not affiliated with Syktyvkar and not part of the disposal.
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