Mondi Group sells 25.1% interest in Mondi Hadera Paper Ltd

Mondi confirms that it has signed an agreement with Hadera Paper Ltd., for the sale of 25.1% of its shares (the “Shares”) in Mondi Hadera Paper Ltd. (the “Company”). After completion of the transaction, Hadera Paper Ltd. will hold 75% of the shares in the Company and Mondi will retain a minority interest of 25%.

The Company is a non-integrated paper mill located in Israel with capacity to produce 145,000 tonnes per annum of office and printing papers, which are predominately sold in the local market.

The Shares are to be sold for a consideration of EUR10.4 million. The consideration will be satisfied in cash at completion and will be used to reduce Mondi’s net debt. The value of the Company’s gross assets amounted to EUR84.9 million as of 31 December 2009 and its profit before tax for the year ended 31 December 2009 amounted to EUR5.3 million. Net debt as of 31 December 2009 was EUR13.9m. It is estimated that the transaction will give rise to a marginal gain on disposal.

With this divestiture Mondi’s European uncoated fine paper business will focus its development around the core central European and Russian production base while retaining an exposure to the value inherent in the Company through its remaining 25% interest.

The completion of the deal is conditional on the approval of the relevant competition authorities.

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 central 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 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 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.

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 Listing Requirements and/or the Disclosure and Listing Rules of the United Kingdom Listing Authority.

Last change: 23/09/2010