Paper and packaging group Mondi has, alongside Svenska Cellulosa Aktiebolaget, divested their 100 per cent interest in Kent-based Aylesford Newsprint to an independent private equity firm.
The shares were sold for a nominal consideration, which was satisfied in cash at completion. Immediately prior to completion, the firm was recapitalised, with the proceeds used to repay in full its interest bearing debt and leave net cash of £23m.
Mondi will make a loss on the disposal of around €71m, which will be accounted for as a non-operating special item, with the estimated negative cash flow effect of the transaction totalling about €17m.
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Aylesford Newsprint had pro forma gross assets of around £99m, immediately prior to completion.
Mondi's Chief Executive David Hathorn said: "This disposal allows us to continue to focus on our core businesses, while creating an opportunity for Aylesford to continue supplying newsprint to the major national newspaper groups in the UK."
The firm's share price 0.08% to 626.50p by 14:43.
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