Mondi sells Mondi Syktyvkar for €1.5 billion

Mondi PLC announced it had entered into an agreement to sell Syktyvkar mill, its most significant facility in Russia, for around €1.5 billion. The disposal is conditional on the approval of the Russian government. The deal is also subject to Mondi’s shareholder approval at a general meeting. Mondi also owns three converting plants in Russia, which are not affiliated with Syktyvkar and are not part of the disposal.

The Syktyvkar assets to be transferred to Augment exclude a cash balance of around €255 million, which is planned to be distributed as dividend to Mondi before completion of the transaction.

Syktyvkar mill employs about 4,500 people and it provides uncoated fine paper and containerboard to the domestic Russian market. In 2021, Syktyvkar reported revenue of €821 million; and earnings before interest, taxes, depreciation and amortisation of €334 million.