Mondi ready for simplified structure


Mondi ready for simplified structure


Published Date: 2019-07-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mondi ready for simplified structure

The paper and packaging group will start trading under a single holding company structure at the end of the month.

Mondi says a scheme aimed at simplifying its group structure has become unconditional, paving the way for it to eliminate its dual listed status under London-listed Mondi plc and JSE-listed Mondi Limited.

Shareholders approved its proposal to operate under a single holding company, Mondi plc, earlier this year. The group will maintain its premium listing on the LSE and will have an inward secondary listing on the JSE. It said the move would streamline cash and dividend flows, increase transparency and remove the complexity inherent in its current structure.

When it proposed the move last year, it said its non-SA interests had grown faster than its SA businesses, reflecting the relative scale of opportunities in the respective markets. More than 90% of its underlying earnings are generated outside the country. Following the simplification, each Mondi plc shareholder will have the same voting and capital interests in the group as each Mondi Limited and Mondi plc shareholder currently has.

Mondi Ltd shares will be suspended from trading on 24 July and shareholders will receive New Mondi plc shares on a one-for-one basis when the scheme becomes effective on 26 July, with the new shares admitted to the JSE on 29 July.

Mondi Ltd's shares fell 1.3% to R300.50 yesterday while Mondi plc declined 2.2% to R301.37.


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