Business News

Mondi Group sells 25.1% interest in Mondi Hadera Paper Ltd

Thursday 09. September 2010 - Mondi confirms that it has signed an agreement with Hadera Paper Ltd., for the sale of 25.1% of its shares (the "Shares") in Mondi Hadera Paper Ltd. (the "Company"). After completion of the transaction, Hadera Paper Ltd. will hold 75% of the shares in the Company and Mondi will retain a minority interest of 25%.

The Company is a non-integrated paper mill located in Israel with capacity to produce 145,000 tonnes per annum of office and printing papers, which are predominately sold in the local market.
The Shares are to be sold for a consideration of EUR10.4 million. The consideration will be satisfied in cash at completion and will be used to reduce Mondi’s net debt. The value of the Company’s gross assets amounted to EUR84.9 million as of 31 December 2009 and its profit before tax for the year ended 31 December 2009 amounted to EUR5.3 million. Net debt as of 31 December 2009 was EUR13.9m. It is estimated that the transaction will give rise to a marginal gain on disposal.
With this divestiture Mondi’s European uncoated fine paper business will focus its development around the core central European and Russian production base while retaining an exposure to the value inherent in the Company through its remaining 25% interest.
The completion of the deal is conditional on the approval of the relevant competition authorities.