(3 minutes read)
· South Africa’s Paper and packaging group Mondi has acquired Turkey’s packaging firm Olmuksan in an effort to expand its footprint beyond the homeland
· Mondi was recently in news for declaring dividend payments to shareholders to reassure its shareholders that Covid-19 pandemic had least effect on its bottom lines
· Olmuksan is listed on the Istanbul Stock Exchange and has five plants that produce sustainable packaging for food, beverage, agriculture and industrial applications, employing 800 people
South Africa’s Paper and packaging group Mondi has acquired Turkey’s packaging firm Olmuksan in an effort to expand its footprint beyond the homeland. Mondi was recently in the news for declaring dividend payments to shareholders to reassure its shareholders that Covid-19 pandemic had least effect on its bottom lines.
The vanilla takeover of the Turkish company envisages Mondi acquiring an initial 90.38% stake in Olmuksan International Paper for €66m (R1.2bn), subject to mandatory approvals including from competition authorities. The remaining shares (9.6%) being held by the minority shareholders will be acquired subsequent to the approvals of the regulatory authorities. Once the deal is completely gone through, Mondi may have to cough up about €88 million.
Olmuksan is listed on the Istanbul Stock Exchange and has five plants that produce sustainable packaging for food, beverage,
agriculture and industrial applications, employing 800 people. The Turkish packaging major was founded in 1968. Mondi already has a presence in Turkey. It has four corrugated packaging plants and a paper mill for recycled containerboard. With the new acquisition, the South African company will have considerable bandwidth in Turkey.
Mondi said that the pandemic had boosted demand for some products, such as e-commerce packaging. The bottom line of Mondi is lackluster. Its earnings before interest, taxation, depreciation and amortisation (ebitda) fell 20% to €306m in the three months to end-September. It has paid out €237m during that quarter for an interim dividend , which was suspended in April.
