(Alliance News) - Mondi PLC on Tuesday it planned to return about EUR775 million in the form of a special dividend to its shareholders following the sale of Joint Stock Co Mondi Syktyvkar in Russia.
The Weybridge, England-based packaging firm sold Syktyvkar to Sezar Invest LLC in October.
The company said on Tuesday it will ask its shareholders to vote on the special payout, and the share consolidation that will accompany this windfall, at a general meeting on January 15. If approved, the proceeds will be paid on January 26. Mondi has previously signalled it intended to distribute the Syktyvkar spoils to its investors.
On Tuesday, Mondi declared the special dividend of EUR1.60 per share. In addition, in order to maintain the comparability of its share price, it proposed that the payout be accompanied by a share consolidation, resulting in shareholders receiving 10 new shares for every 11 held.
The packaging firm confurmed early this month had received RUB80 billion, about USD888.8 million, from the sale of Syktyvkar, its last remaining facility in Russia.
The total sum includes the two remaining instalments in November and December, totalling RUB23 billion in aggregate. The proceeds had all been converted into euros.
Back in July, Mondi sold its three Russian packaging converting operations to Gotek Group for EUR30.4 million.
The net proceeds from the sale of Syktyvkar sold and the three converting operations amount to about EUR775 million.
Mondi shares advanced 0.9% to 1,519.00 pence each on Tuesday morning in London, and rose 1.0% to ZAR355.09 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Mondi (MNDI)