| Wed 5 May 2010, 8:02 | | MND/MNP - Mondi Limited - Mondi Group divests its merchant operations in |
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MND MNP
MND MNP
MND/MNP - Mondi Limited - Mondi Group divests its merchant operations in
central Europe and Russia
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.
Mondi Group divests its merchant operations in central Europe and Russia
Mondi confirms that it has signed an agreement with the Heinzel Group for
the sale of 100% of its shares in Europapier, a paper merchant business
selling graphic, packaging and office papers, as well as other office
supplies to customers across central Europe and Russia. Europapier is a
leading paper merchant in Austria and has leading market positions in
Bosnia Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Poland,
Romania, Russia, Serbia, Slovakia and Slovenia.
The shares in Europapier are to be sold for a consideration of EUR60
million on a cash and debt free basis. The consideration will be satisfied
in cash at completion and will be used to reduce Mondi`s net debt. The
value of the gross assets subject to the divestiture amounted to EUR151
million as of 31 December 2009. Europapier`s losses before tax for the year
ended 31 December 2009 were EUR6.5 million. The loss on disposal of the
business will be around EUR25 million and will be accounted for as a non
operating special item.
Mondi Group CEO David Hathorn said "This is an important step which allows
us to increase the focus on our core business whilst also creating the
opportunity for Europapier to position itself as a fully independent paper
merchant in the future".
The completion of the deal is conditional on the approval of the relevant
competition authorities.
/ends
Contact
Lora Rossler
Mondi Group
Tel: +27 31 451 2111
Email: lora.rossler@mondigroup.co.za
Chloe Webb
Financial Dynamics
Tel: +27 11 214 2421
Email: chloe.webb@fd.com
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.
5 May 2010
Sponsor : UBS South Africa (Pty) Ltd
Date: 05/05/2010 08:02:36 Produced by the JSE SENS Department.
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