LONDON (dpa-AFX) - British packaging and paper company Mondi Plc (MNDI.L) Thursday confirmed an agreement to sell its three Russian packaging converting operations to the Gotek Group, a packaging producer in the country, for RUB 1.6 billion or around 24 million euros.
The consideration is payable in cash on completion of the deal, which is expected to complete in the first half of 2023.
The loss on the disposal is expected to be in the range of 70 million euros to 80 million euros at current exchange rate.
The disposal is conditional on the approval of the Russian Federation's Government Sub-Commission for the Control of Foreign Investments and customary antitrust approvals. However, as the transaction is being undertaken in an evolving political and regulatory environment, there can be no certainty as to when the deal will be completed, the company noted.
The three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants, producing a range of packaging solutions for the domestic Russian market.
The planned sale follows Mondi's announcement in May that it had decided to divest its Russian assets following Russia's Ukraine invasion.
Mondi said the disposal is not affiliated with the proposed disposal of Mondi Syktyvkar for which the approval of the Russian Federation's Government Sub-Commission for the Control of Foreign Investments and customary antitrust approvals remain outstanding.
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