Disposal

Mondi Limited       
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

25 February 2016

As part of the dual listed company structure, Mondi Limited and Mondi plc (together “Mondi Group” or “Mondi”) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Rules and Transparency Rules and/or the Listing Rules of the United Kingdom Listing Authority.

Mondi to sell Neusiedler to its 51% held subsidiary Mondi SCP a.s. (Ruzomberok)

Mondi has signed an agreement to sell its wholly owned uncoated fine paper operations in Austria, Hausmening and Kematen (together, “Neusiedler”) to one of its subsidiaries, Mondi SCP, a.s. (“SCP”). Mondi has a 51% interest in SCP, while the remaining 49% is held by ECO-INVEST, a.s., (“Ecoinvest”). The resultant disposal reduces Mondi’s effective ownership in Neusiedler from 100% to 51%, with Ecoinvest owning the remaining 49%.

SCP owns and operates the uncoated fine paper mill in Ruzomberok, Slovakia. The transaction will enable Neusiedler and SCP to better align and optimise their product portfolio and production capacity.

SCP will pay a cash consideration of EUR30 million for 100% of Neusiedler. SCP will also assume debt and debt-like liabilities relating to the business which imply an enterprise value of EUR115 million for 100% of Neusiedler. If certain EBITDA targets are met, SCP would pay an additional, limited, consideration (1).

Ecoinvest is a related party as defined in LR 11.1.4R of the UKLA Listing Rules and this announcement is made in accordance with paragraph LR11.1.10R of the UKLA Listing Rules (smaller related party transactions). The transaction does not fall into the requirements set out in Section 10 (transactions with related parties) of the JSE Listing Requirements.

The transaction is expected to complete in March 2016.

(1) For regulatory reasons, a notional EUR100 million earn-out cap has been agreed. 

Contact:

Mondi Group
Lora Rossler
Group Head of Communications
Tel: [phone]
E-mail:[e-mail]

Andrew King
Group CFO
Tel: [phone]
E-mail:[e-mail]

About Mondi:

Mondi is an international packaging and paper Group, employing around 25,000 people across more than 30 countries.  Our key operations are located in central Europe, Russia, North America and South Africa. We offer over 100 packaging and paper products, customised into more than 100,000 different solutions for customers and end consumers. In 2014, Mondi had revenues of EUR6.4 billion and a return on capital employed of 17.2%.

The Mondi Group is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions.  Our innovative technologies and products can be found in a variety of applications including hygiene components, stand-up pouches, super-strong cement bags, clever retail boxes and office paper.  Our key customers are in industries such as automotive; building and construction; chemicals; food and beverage; home and personal care; medical and pharmaceutical; packaging and paper converting; pet care; and office and professional printing.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI.

For us, sustainable development makes good business sense.  We don’t just talk about sustainability; we make it part of the way we work every day.  We have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007.

Sponsor in South Africa: UBS South Africa (Pty) Ltd
Sponsor in United Kingdom: UBS Limited