Mondi has announced that it has entered into an agreement to sell its most significant facility in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities to Augment Investments Limited. Source: Timberbiz
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. The disposal is also subject to the approval of Mondi’s shareholders at a general meeting.
The proposed disposal follows Mondi’s announcement on 4 May 2022 that having assessed all options for the Group’s interests in Russia, it had decided to divest its Russian assets. Accordingly, Mondi launched a competitive auction process to find a suitable new owner for Syktyvkar.
Syktyvkar is a wholly owned integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic). The business employs approximately 4500 people and it is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.
Mondi operates three converting plants in Russia, which are much smaller in size, not affiliated with Syktyvkar and not part of the disposal. An update will be provided on the divestment of these plants in due course.
Augment is an investment vehicle majority owned by Viktor Kharitonin, comprising assets in the pharmaceutical and other sectors across Russia, Europe and the United Kingdom.
