Mondi Terminates Sale Agreement of Syktyvkar Mill in Russia to Augment Investments

Syktyvkar is an integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic). The business employs approximately 4,500 people and is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.

June 5, 2023 - Mondi plc today confirmed that it has advised Augment Investments Limited that it is withdrawing from the agreement to sell Mondi's pulp and paper mill in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities ("Syktyvkar"), to Augment. According to Mondi, this follows recent discussions with Augment on its lack of progress in gaining the necessary approvals to complete this transaction.

As per the terms of the Sale and Purchase Agreement, the Disposal to Augment will therefore be terminated and will not complete, Mondi said in a news release.

Mondi in August 2022 announced that it entered into an agreement to sell its Syktyvkar mill, together with two affiliated entities to Augment Investments for a consideration of RUB 95 billion (around EUR 1.5 billion), payable in cash on completion.

Mondi said its Board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options.

Mondi noted that the proposed disposal of the Group's three Russian packaging converting operations to Gotek Group, as announced on 15 December 2022, is not connected with the proposed disposal of Syktyvkar. This transaction remains in progress.

Mondi is a global leader in packaging and paper, offering innovative and sustainable packaging and paper solutions. The company is fully integrated across the packaging and paper value chain.

SOURCE: Mondi plc

Go to a related article at PaperAge: Mondi to Sell Syktyvkar Pulp and Paper Mill in Russia for EUR 1.5 Billion - Aug. 15, 2022.