Mondi refused to sell Russian Mondi Syktyvkar to Augment Investments

310
2
AK&M 05 June 2023 17:30

The British company Mondi plc has notified Augment Investments Limited of the termination of the agreement on the sale of the largest Russian asset of JSC Mondi Syktyvkar LPC (Mondi Syktyvkar) together with two affiliated companies of Augment. This is reported in a Mondi press release.

The decision was made due to the lack of "any progress in obtaining the necessary permits to complete the transaction."

Thus, in accordance with the terms of the contract of sale, the transaction for the sale of the enterprise Mondi Syktyvkar of Augment is considered to be permanently terminated.

However, the Mondi board does not intend to abandon the sale of Mondi Syktyvkar and will continue to explore alternative options.

The sale of Mondi Syktyvkar for 95 billion rubles (1.5 billion euros) was concluded with the investment company Augment in August 2022, but was not approved by the government commission for control over foreign investments.

The proposed sale of three Russian Mondi enterprises for the production of corrugated cardboard and packaging (LLC "Mondi Pereslavl", LLC "Mondi Aramil" and LLC "Mondi Lebedyan") the Russian company Gotek Group for 1.6 billion rubles (24 million euros) in accordance with the agreement of December 15, 2022, for 1.6 billion rubles (about 24 million euros) It is not related to the sale of Mondi Syktyvkar and is under implementation.

Mondi plc is an international group of companies producing packaging and various types of paper products. The company has 102 branches in 30 countries, including Central Europe and South Africa. The headquarters are located in Weybridge (UK) and Vienna (Austria).

Mondi Syktyvkar LPC is one of Russia's largest producers of pulp and paper products with a production volume of 1.2 million tons per year. The company produces office, offset and newsprint paper and commercial pulp.