The Tennessee based packaging, pulp and paper group, International Paper, announces that it is selling its stake in Olmuksan to the English packaging and paper manufacturer Mondi for a total of 66 million euros. This represents 90.38% of Olmuksan's shares and involves an enterprise value of approximately ?88 million.
Olmuksan is a Turkish company listed on the Istanbul Stock Exchange and specialises in corrugated packaging for the food, agricultural and industrial sectors. It operates five plants, employs around 800 people and had a turnover in the last financial year (to 30 September 2020) of 1?093 million Turkish liras, or 150 million euros. International Paper has no other subsidiaries in Turkey.
Mondi has been present in Turkey for many years. The group now has four corrugated packaging plants, a paper mill made of recycled cardboard and three flexible packaging plants.
Through this investment Mondi wishes to strengthen "considerably" its position in the Turkish corrugated market, says Andrew King, the group's managing director. It also intends to generate "significant operational improvements" .
The transaction, subject to various regulatory conditions, is expected to close in the first half of 2021. Mondi will then launch a mandatory tender offer to acquire the remaining 9.62% of Olmuksan shares held by minority shareholders.
