(Alliance News) - Mondi PLC on Tuesday said it has agreed to buy 90% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS from International Paper for EUR66 million.
Olmuksan is a packaging player in Turkey, listed on the Istanbul stock exchange. Its network of five plants provides a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications, Mondi said.
The Addlestone-based packaging and paper company said for the twelve months to the end of September 2020, Olmuksan produced 256 thousand tonnes of corrugated packaging and generated revenues of TRY1.09 billion, about EUR150 million.
Mondi noted that it has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities. The company's current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites.
"We are excited by this unique opportunity to significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering to existing and new customers in the region," said Mondi Chief Executive Andrew King.
The transaction remains subject to competition clearance and other closing conditions and is expected to complete in the first half of 2021, Mondi said.
Following the completion of the transaction, Mondi said it will launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares in Olmuksan held by minority shareholders.
Mondi shares were trading 0.4% higher in London on Tuesday at 1,759.00 pence each, while in Johannesburg, the stock was up 0.3% at ZAR352.56 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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