UK’s Mondi to complete Russian exit with $826 mln deal

UK’s Mondi to complete Russian exit with $826 mln deal

(Writes through, adds share price reaction in paragraph 4,
background on companies exiting Russia in paragraphs 7-9)

Sept 18 (Reuters) – British paper and packaging company
Mondi has agreed to sell its largest plant in Russia to
a unit of Moscow-based real estate developer Sezar Group for 80
billion roubles ($825.7 million) in cash.

Completion of the deal for Mondi Syktyvkar would mark
Mondi’s full exit from Russia, having sold three packaging
conversion plants to Gotek Group in July for 1.6 billion

Russia’s anti-monopoly agency and its government commission
in charge of foreign investments has approved the Sezar Invest
deal, which is expected to completed by December, Mondi said on

Mondi’s London-listed shares rose 4.4% to 13.96 pounds in
early trade.

The company had previously scrapped a 95 billion rouble deal
to sell Mondi Syktyvkar to an investment vehicle owned by
Russian billionaire Viktor Kharitonin, citing «lack of progress»
in obtaining approvals.

Mondi Syktyvkar, a pulp, packaging paper and uncoated fine
paper mill, employs about 4,500 people and reported revenue of
roughly 1.09 billion euros ($1.16 billion) at the end of 2022.

The British company joins a long list of Western companies
to have withdrawn from Russia after sanctions against Moscow
over the war in Ukraine.

British American Tobacco this month said it would
sell its Russian and Belarusian businesses to a consortium led
by its Russian management team, ending an 18-month long process.

Other recent exits include brewer Heineken and
automaker Volkswagen.

($1 = 96.8850 roubles)
($1 = 0.9370 euros)
(Reporting by Eva Mathews in Bengaluru
Editing by Savio D’Souza and David Goodman)