(Reuters) – British paper and packaging firm Mondi Plc on Monday said it would terminate a 95 billion rouble ($1.17 billion) deal with an investment vehicle owned by Russian billionaire Viktor Kharitonin for its largest plant in Russia, as there was a “lack of progress” in getting necessary approvals.
Mondi’s London-listed shares fell 2% in morning trade.
The company had agreed to sell Mondi Syktyvkar, a pulp, packaging paper and uncoated fine paper mill located in the capital of the Komi Republic in Russia to Augment Investments in August last year.
While the deal with Augment Investments was off, Mondi said on Monday it “remained committed to divest the plant and will continue to assess all alternative divestment options.”
Separately, the company had agreed to sell three of its Russian packaging converting operations to Moscow-based Gotek Group for 1.6 billion roubles in December.
That deal remains in progress, Mondi said.
($1 = 81.3975 roubles)
(Reporting by Eva Mathews in Bengaluru; Editing by Nivedita Bhattacharjee)
