JSE-listed paper and packaging company Mondi has advised that it is withdrawing from an agreement to sell its most significant facility in Russia, the Joint Stock Company Mondi Syktyvkar, together with two affiliated entities, to Augment Investments following recent discussions on the latter's lack of progress in gaining the necessary approvals to complete the transaction.
"The disposal to Augment will, therefore, be terminated and will not complete. The Mondi board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options," the company said.
The proposed disposal of the group’s three Russian packaging converting operations to Gotek Group, announced on December 15, is not connected with the proposed disposal of Syktyvkar, and this transaction remains in progress, it noted.