Paper manufacturer "Snegurochka" found a buyer for business in Russia

The Austrian Mondi in March 2022 announced plans to get rid of business in RUSSIA. Now the company says it has found a buyer.

One of the largest office paper producers in Russia, which also produces Snegurochka paper, announced the sale of the business to a new owner: the assets of the Austrian Mondi in Russia for €1.5 billion will be bought out by Augment Investments Limited, co-owner of Pharmstandard, billionaire Viktor Kharitonin.

The upcoming deal is mentioned in a message from Mondi published on the website of the company, which announced its intention to leave Russia in March 2022.

The deal includes Mondi Syktyvkarsky LPK together with two subsidiaries. Assets are estimated at 95 billion rubles. (about €1.5 billion).

The deal still needs to be approved by the government commission for foreign investment control and the Federal Antimonopoly Service. The parties expect to close it by the end of 2022. However, due to the "changing political and regulatory environment" in which the deal is planned, "there can be no certainty" that it will be completed, Mondi said.

Balances on the accounts of the companies participating in the transaction in the amount of 16 billion rubles. Mondi intends to pay dividends before the completion of the transaction, but these plans must be approved by the Russian Ministry of Finance.

Mondi Syktyvkar LPK is the largest paper manufacturer in Russia, the company's most famous brand is Snegurochka office paper.

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Viktor Kharitonin ranks 66th in the Russian FORBES rating, the publication estimates his fortune at $1.4 billion.

Earlier, RBC analyzed the transactions of companies leaving Russia. When the mass exodus of foreigners was just beginning, experts expected that foreign players, in a hurry to leave Russia, would sell assets at a significant discount, and Russian strategic investors would become buyers. But competition among Russian buyers, who value foreign assets as high-quality ones, significantly reduced the expected discount, and foreign companies wishing to retain the possibility of returning often began to choose local management as buyers. This is how the accompanying consulting companies assessed the deals.

Experts interviewed by RBC identified two main categories of buyers: Russian strategic investors (companies and individuals) and local management (management buyout). The last sale scenario accounts for about a third of transactions.

Under what conditions foreigners sell business in Russia Finance