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
2 October 2012
As part of the dual listed company structure, Mondi Limited and Mondi plc
(together "Mondi Group") notify both the JSE Limited ("JSE") and the London
Stock Exchange of matters required to be disclosed under the JSE Listings
Requirements and/or the Disclosure Rules and Transparency Rules and/or the
Listing Rules of the United Kingdom Listing Authority.
Mondi Group divests its interest in Aylesford Newsprint Holdings Limited
Mondi Group and Svenska Cellulosa Aktiebolaget ("SCA") have sold their 100%
interest in the jointly owned Aylesford Newsprint Holdings Limited ("Aylesford
Newsprint" or the "Company") to The Martland Holdings. The Martland Holdings is
an independent private equity firm which focuses on acquiring non-core
divisions of corporations and private companies worldwide.
Aylesford Newsprint, located in Kent, UK, has capacity to produce approximately
400 thousand tonnes of newsprint per annum from 100% recycled fibre. The
Company supplies the major national newspapers groups in the UK and exports
some of its production to mainland Europe.
The shares in Aylesford Newsprint were sold for a nominal consideration
satisfied in cash at completion. Immediately prior to completion, the Company
was re-capitalised, with the proceeds used to repay in full its interest
bearing debt and leave net cash of GBP23 million. For the year ended 31
December 2011, Aylesford Newsprint generated negative EBITDA before special
items of GBP4 million and net loss before special items of GBP16 million.
Immediately before completion, Aylesford Newsprint pro forma gross assets
amounted to approximately GBP99 million.
Mondi Group's loss on disposal of its 50% interest in the Company will be
approximately EUR71 million, accounted for as a non operating special item, and
the estimated negative cash flow effect of this transaction will be
approximately EUR17 million.
Mondi Group CEO David Hathorn said "This disposal allows us to continue to
focus on our core businesses, while creating an opportunity for Aylesford to
continue supplying newsprint to the major national newspaper groups in the UK".
The Martland Holdings Executive Director Landry Kouakou said "We are pleased to
partner with Aylesford Newsprint's management and employees for the future
success of the company. Aylesford Newsprint's quality industrial asset combined
with a strong balance sheet will allow us to build long-term value under
current market conditions."
/ends
Contact:
Mondi Group
Lora Rossler
Group Corporate Affairs Manager
Tel: +27 (0)31 451 2111 or +27 (0)83 627 0292
E-mail: lora.rossler@mondigroup.co.za
Andrew King
Group CFO
Tel: +27 (0)11 994 5415
E-mail: andrew.king@mondigroup.com
About Mondi:
Mondi is an international packaging and paper Group, with production operations
across 29 countries and revenues of EUR5.7 billion in 2011. The Group's key
operations are located in central Europe, Russia and South Africa and as at the
end of 2011, Mondi Group employed 23,400 people.
Mondi Group 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 paper into corrugated packaging,
industrial bags and coatings.
The Group is principally involved in the manufacture of packaging paper,
converted packaging products and uncoated fine paper (UFP).
Mondi Group 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. The
Group has been recognised for its sustainability through its inclusion in the
FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's
Socially Responsible Investment (SRI) Index since 2007. The Group was also
included in the FTSE350 Carbon Disclosure Leadership Index for the second year.
Sponsor in South Africa: UBS South Africa (Pty) Ltd
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