MND/MNP - Mondi Limited/Mondi plc - Mondi Group sells 25.1% interest in Mondi

MND/MNP - Mondi Limited/Mondi plc - Mondi Group sells 25.1% interest in Mondi   
Hadera Paper Ltd                                                                
Mondi Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1967/013038/06)                                           
JSE share code: MND ISIN: ZAE000097051                                          
Mondi plc                                                                       
(Incorporated in England and Wales)                                             
(Registration number: 6209386)                                                  
JSE share code: MNP ISIN: GB00B1CRLC47                                          
LSE share code: MNDI                                                            
As part of the dual listed company structure, Mondi Limited and Mondi plc       
(together "Mondi Group") notify both the JSE Limited and the London Stock       
Exchange of matters required to be disclosed under the JSE Listing Requirements 
and/or the Disclosure and Listing Rules of the United Kingdom Listing Authority.
8 September 2010                                                                
Mondi Group sells 25.1% interest in Mondi Hadera Paper Ltd                      
Mondi confirms that it has signed an agreement with Hadera Paper Ltd., for the  
sale of 25.1% of its shares (the "Shares") in Mondi Hadera Paper Ltd. (the      
"Company"). After completion of the transaction, Hadera Paper Ltd. will hold 75%
of the shares in the Company and Mondi will retain a minority interest of 25%.  
The Company is a non-integrated paper mill located in Israel with capacity to   
produce 145,000 tonnes per annum of office and printing papers, which are       
predominately sold in the local market.                                         
The Shares are to be sold for a consideration of EUR10.4 million. The           
consideration will be satisfied in cash at completion and will be used to reduce
Mondi`s net debt. The value of the Company`s gross assets amounted to EUR84.9   
million as of 31 December 2009 and its profit before tax for the year ended 31  
December 2009 amounted to EUR5.3 million. Net debt as of 31 December 2009 was   
EUR13.9m. It is estimated that the transaction will give rise to a marginal gain
on disposal.                                                                    
With this divestiture Mondi`s European uncoated fine paper business will focus  
its development around the core central European and Russian production base    
while retaining an exposure to the value inherent in the Company through its    
remaining 25% interest.                                                         
The completion of the deal is conditional on the approval of the relevant       
competition authorities.                                                        
Contact                                                                         
Lora Rossler                                                                    
Mondi Group                                                                     
Tel: +27 31 451 2111                                                            
Email: lora.rossler@mondigroup.co.za                                            
Chloe Webb                                                                      
Financial Dynamics                                                              
Tel: +27 11 214 2421                                                            
Email:  chloe.webb@fd.com                                                       
Sponsor: UBS                                                                    
About Mondi                                                                     
Mondi is an international paper and packaging company, with production          
operations across 31 countries and revenues of EUR5.3 billion in 2009. The      
Group`s key operations are located in central Europe, Russia and South Africa   
and employed 31,000 people on average in 2009.                                  
Mondi is fully integrated across the paper and packaging process, from the      
growing of wood and the manufacture of pulp and paper (including recycled       
paper), to the conversion of packaging papers into corrugated packaging and     
industrial bags.                                                                
The Group is principally involved in the manufacture of uncoated fine paper     
(UFP), packaging paper and converted packaging products, as well as speciality  
products.                                                                       
Mondi has a dual listed company structure, with a primary listing on the JSE    
Limited for Mondi Limited under the ticker code MND and a premium listing on the
London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group has  
been recognised for its sustainability performance through its inclusion in the 
FTSE4Good UK, Europe and Global indices in 2008 and 2009 and the JSE`s Socially 
Responsible Investment (SRI) Index in 2007, 2008 and 2009.                      
Date: 08/09/2010 12:50:01 Supplied by www.sharenet.co.za                     
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