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Corporate
Mondi pulls out of CEE merchant paper business
Mondi confirms that it has signed an agreement with the Heinzel Group for the sale of 100% of its shares in Europapier, a paper merchant business selling graphic, packaging and office papers, as well as other office supplies to customers across central Europe and Russia. Europapier is a leading paper merchant in Austria and has leading market positions in Bosnia Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia and Slovenia.The shares in Europapier are to be sold for a consideration of EUR60 million on a cash and debt free basis. The consideration will be satisfied in cash at completion and will be used to reduce Mondi’s net debt. The value of the gross assets subject to the divestiture amounted to EUR151 million as of 31 December 2009. Europapier’s losses before tax for the year ended 31 December 2009 were EUR6.5 million. The loss on disposal of the business will be around EUR25 million and will be accounted for as a non operating special item.
Mondi Group CEO David Hathorn said “This is an important step which allows us to increase the focus on our core business whilst also creating the opportunity for Europapier to position itself as a fully independent paper merchant in the future”.
