Acquisition and Disposal Notice

Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000097051

 

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

 

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

 

19 April 2010

                                                                               

Mondi acquires the industrial and consumer bag operations of the Smurfit Kappa
Group in western Europe and disposes of its corrugated box plants in the UK

Mondi Group confirms that it has signed an agreement with the Smurfit Kappa
Group for the acquisition of its western European industrial and consumer bag
operations, which consist of 4 plants in France, 3 in Spain, and 1 in Italy as
well as certain sales offices.

 

Mondi will have a net cash inflow of EUR 8m on acquisition of the business. The
business had gross assets of EUR 38m as of 31 December, 2009 and losses before
tax of EUR 12.6m in the year ended 31 December 2009. The acquired operations
will benefit from integration into Mondi's industrial and consumer bags
business.

 

The acquisition is in line with Mondi's strategy to strengthen its leading
market position in industrial and consumer bags in Europe and further increase
the forward integration of kraft paper into bags.

 

Mondi confirms further that it has also signed an agreement with the Smurfit
Kappa Group for the sale of all three of Mondi's corrugated box plants in the
UK. The shares in the business will be sold for a consideration of EUR 43m on a
cash and debt free basis. The consideration will be satisfied in cash at
completion. Proceeds will be utilised to reduce Mondi's net debt. The business
being disposed of had gross assets of EUR 60m as of 31 December, 2009 and
profits before tax of EUR 2.0m in the year ended 31 December 2009.

 

The divestiture concludes a programme of restructuring the Group's western
European corrugated packaging and recycled containerboard portfolio and will
enable Mondi to refine its geographical footprint around its core corrugated
positions in central Europe and Turkey.

 

Both deals are conditional on customary completion conditions.

 

/ends

 

 

Contact

Kerry Crandon
Mondi Group
Tel: [phone]
Email: [e-mail]

 

Andrew King
Mondi Group
Tel: [phone]
Email:  [e-mail]

 

About Mondi

Mondi is an international paper and packaging company, with production
operations across 31 countries and revenues of €5.3 billion in 2009. The
Group's key operations are located in western and emerging Europe, Russia and
South Africa and employed 31,000 people on average in 2009.

 

Mondi is fully integrated across the paper and packaging process, from the
growing of wood and the manufacture of pulp and paper (including recycled
paper), to the conversion of packaging papers into corrugated packaging and
industrial bags.

 

The Group is principally involved in the manufacture of uncoated fine paper
(UFP), packaging paper and converted packaging products, as well as speciality
products.

 

Mondi is a dual listed company, with primary listings on the Johannesburg and
London stock exchanges under the ticker codes MND (JSE) and MNDI (LSE)
respectively. The Group has been recognised for its sustainability performance
through its inclusion in the FTSE4Good UK, Europe and Global indices in 2008
and 2009 and the JSE's Socially Responsible Investment (SRI) Index in 2007,
2008 and 2009.