Austria’s Mondi Group has agreed to sell its three Russian packaging converting operations to the Gotek Group for 1.6 billion rubles, around 24 million euros.
“Mondi plc confirms that it has entered into an agreement to sell its three Russian packaging converting operations to the Gotek Group for a consideration of 1.6 billion rubles, around 24 million euros at the current exchange rate, payable in cash upon completion,” according to the press release.
The disposal does not affect Mondi’s largest asset in Russia, JSC Mondi Syktyvkar forest industry complex, which is expected to obtain permission for sale from the government commission on foreign investment, Mondi said. There were previous reports that the asset could be sold to the enterprises of Viktor Kharitonov, who owns Pharmstandard .
The loss on the disposal is expected to be in the range of 70-80 million euros at the current exchange rate.
Mondi made the decision to sell its business in May of this year. Mondi expects to close the deal to sell the packaging business in the first half of 2023 after receiving approvals from the aforementioned government’s foreign investment commission and the Federal Antimonopoly Service.
Mondi’s packaging business in Russia includes Mondi Pereslavl LLC in the Yaroslavl region, which produces food and non-food flexible packaging; Mondi Aramil LLC in the Sverdlovsk region, the only plant in Russia with full cycle production of flexible polymer food, non-food and industrial packaging; and Mondi Lebedyan LLC in the Lipetsk region, which produces corrugated cardboard packaging.
According to SPARK-Interfax, the Lipetsk enterprise in 2021 generated revenue of 4.5 billion rubles and net profit of 275 million rubles, while Mondi Pereslavl had losses of 134 million rubles with revenue of 4 billion rubles, and Mondi Aramil losses of 28 million rubles and revenue of 3.7 billion rubles.
Gotek describes itself as one of Russia’s top three packaging producers. It specializes corrugated cardboard packaging, molded pulp board and flexible packaging materials. The group includes five production sites in the Kursk, Tula and Leningrad regions: JSC Gotek, JSC Gotek-Polipak and JSC Gotek-Print located in Zheleznogorsk, as well as JSC Gotek-Center in Novomoskovsk and JSC Gotek North-West in Vsevolzhsk district.
Gotek is wholly owned by international company/limited liability company IC LLC Salgon Investments Limited, registered in August this year in a special administrative region in the Kaliningrad region. Its owners, according to the Unified State Register of Legal Entities as of October 2022, are IC LLC Wythall International Ltd, owned by Gotek chairman of the board of directors Vladimir Chuikov and his relatives with a 51%, and Cyprus-registered Enercom Limited with 49%.
Prior to redomiciliation, Gotek’s owner was the Cyprus-registered Salgon Investments Limited, whose controlling shareholder was Wythall International, also registered in Cyprus. The company says on its website that it “together with strategic partner Sberbank , is a co-owner of Salgon Investments Limited, which owns 100% of the Gotek group.” Wythall International’s projects include development business on Cyprus.
