| Mon 19 Apr 2010, 11:30 | | MND / MNP - Mondi Acquires The Industrial And Consumer Bag Operations Of |
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MND MNP
MND MNP
MND / MNP - Mondi Acquires The Industrial And Consumer Bag Operations Of
The Smurfit Kappa Group In Western Europe And Disposes Of Its Corrugated
Box Plants In The UK
Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000097051
Mondi plc
(Incorporated in England and Wales)
(Registration number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
As part of the dual listed company structure, Mondi Limited and Mondi
plc (together `Mondi Group`) notify both the JSE Limited and the London
Stock Exchange of matters required to be disclosed under the JSE
Listings Requirements and/or the Disclosure and Transparency and Listing
Rules of the United Kingdom Listing Authority.
19 April 2010
Mondi acquires the industrial and consumer bag operations of the Smurfit
Kappa Group in western Europe and disposes of its corrugated box plants
in the UK
Mondi Group confirms that it has signed an agreement with the Smurfit
Kappa Group for the acquisition of its western European industrial and
consumer bag operations, which consist of 4 plants in France, 3 in
Spain, and 1 in Italy as well as certain sales offices.
Mondi will have a net cash inflow of EUR 8m on acquisition of the
business. The business had gross assets of EUR 38m as of 31 December,
2009 and losses before tax of EUR 12.6m in the year ended 31 December
2009. The acquired operations will benefit from integration into Mondi`s
industrial and consumer bags business.
The acquisition is in line with Mondi`s strategy to strengthen its
leading market position in industrial and consumer bags in Europe and
further increase the forward integration of kraft paper into bags.
Mondi confirms further that it has also signed an agreement with the
Smurfit Kappa Group for the sale of all three of Mondi`s corrugated box
plants in the UK. The shares in the business will be sold for a
consideration of EUR 43m on a cash and debt free basis. The
consideration will be satisfied in cash at completion. Proceeds will be
utilised to reduce Mondi`s net debt. The business being disposed of had
gross assets of EUR 60m as of 31 December, 2009 and profits before tax
of EUR 2.0m in the year ended 31 December 2009.
The divestiture concludes a programme of restructuring the Group`s
western European corrugated packaging and recycled containerboard
portfolio and will enable Mondi to refine its geographical footprint
around its core corrugated positions in central Europe and Turkey.
Both deals are conditional on customary completion conditions.
/ends
Contact
Kerry Crandon
Mondi Group
Tel: +27 11 994 5425
Email: kerry.crandon@mondigroup.com
Andrew King
Mondi Group
Tel: +27 11 994 5415
Email: Andrew.king@mondigroup.com
19 April 2010
Sponsor: UBS South Africa (Pty) Ltd
About Mondi
Mondi is an international paper and packaging company, with production
operations across 31 countries and revenues of Euro5.3 billion in 2009.
The Group`s key operations are located in western and emerging Europe,
Russia and South Africa and employed 31,000 people on average in 2009.
Mondi is fully integrated across the paper and packaging process, from
the growing of wood and the manufacture of pulp and paper (including
recycled paper), to the conversion of packaging papers into corrugated
packaging and industrial bags.
The Group is principally involved in the manufacture of uncoated fine
paper (UFP), packaging paper and converted packaging products, as well
as speciality products.
Mondi is a dual listed company, with primary listings on the
Johannesburg and London stock exchanges under the ticker codes MND (JSE)
and MNDI (LSE) respectively. The Group has been recognised for its
sustainability performance through its inclusion in the FTSE4Good UK,
Europe and Global indices in 2008 and 2009 and the JSE`s Socially
Responsible Investment (SRI) Index in 2007, 2008 and 2009.
Date: 19/04/2010 11:30:01 Produced by the JSE SENS Department.
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