Multinational packaging and paper group Mondi has agreed to sell Mondi Syktyvkar, its biggest Russian operation, to Sezar Invest – a subsidiary of Moscow-based real estate development company Sezar Group – for 80 billion roubles (approx. $826 million) in cash.
Completion of the deal would mark Mondi’s full exit from Russia, having sold three packaging converting operations to Moscow-based Gotek Group for 1.6 billion roubles in July.
Mondi has confirmed that Russia’s Federal Anti-Monoploy Service and Government Commission on Monitoring Foreign Investment have approved the Sezar Invest deal, which is expected to be completed by December 2023. Under the deal, Sezar Invest will pay the total cash consideration of 80 billion roubles in six montly installments.
On the news, Mondi’s London-listed shares rose 4.4% to 13.96 pounds in early trade.
Mondi had previously scrapped a 95 billion rouble ($1.17 billion) deal to sell the Syktyvkar facility to an investment vehicle owned by Russian billionaire Viktor Kharitonin due to “lack of progress” in getting approvals.
Located in Komi Republic, Mondi Syktyvkar is wholly-owned integrated pulp, packaging, and uncoated fine paper mill, employing around 4,500 people, and reported revenue of 1.09 billion euros (approx. $1.16 billion) for the year ending December 2022.