Mondi plc confirmed that it has advised Augment Investments Limited that it is withdrawing from the agreement to sell Mondi's pulp and paper mill in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities ("Syktyvkar"), to Augment. According to Mondi, this follows recent discussions with Augment on its lack of progress in gaining the necessary approvals to complete this transaction.
As per the terms of the Sale and Purchase Agreement, the Disposal to Augment will therefore be terminated and will not complete, Mondi said in a news release.
Mondi in August 2022 announced that it entered into an agreement to sell its Syktyvkar mill, together with two affiliated entities to Augment Investments for a consideration of RUB 95 billion (around EUR 1.5 billion), payable in cash on completion.
Mondi said its Board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options.
Mondi noted that the proposed disposal of the Group's three Russian packaging converting operations to Gotek Group, as announced on 15 December 2022, is not connected with the proposed disposal of Syktyvkar. This transaction remains in progress.
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