SAPPI LIMITED - Sappi announces sale of Enstra Mill recycled packaging paper business to Corruseal Group

Sappi announces sale of Enstra Mill recycled packaging paper business to Corruseal Group

Sappi Limited
(Incorporated in the Republic of South Africa)
Registration number: 1936/008963/06
JSE share code: SAP
ISIN code: ZAE000006284
("Sappi" or the "company")


Media Release

Sappi announces sale of Enstra Mill recycled packaging paper business to
Corruseal Group

Sappi wishes to confirm that it has reached an agreement to sell its Enstra Mill recycled
containerboard and kraft papers business situated in Springs near Johannesburg to
Corruseal Group. Sappi opened negotiations with Corruseal when it was jointly decided that
there was a good fit between Corruseal and Enstra Mill. The mill will continue to
manufacture recycled and lightweight packaging paper. The existing Security Paper, Office,
Speciality and Folio businesses also conducted at the mill will remain with Sappi. A transfer
plan is being arranged with current staff and customers. The disposal is not categorisable in
terms of section 9.5 of the JSE Listings Requirements. The transaction value has not been
disclosed.

Commenting on the transaction, Sappi Southern Africa CEO Alex Thiel said: “The sale of the
mill is in line with Sappi Southern Africa’s strategy to unlock value and is in line with the
Sappi Limited strategy which aims to reduce debt, strengthen its balance sheet and direct
resources to high-growth opportunities. Over the past four years Sappi Southern Africa has
undertaken a comprehensive review of its business and implemented a number of changes
to help the business turn around and to put the business firmly on the path to profitability and
growth - in particular in its paper and paper packaging business. These actions have
delivered significant positive impacts with Sappi Southern Africa returning exceptional results
during Sappi’s 2014 financial year and strong results during this financial year.”

Commenting on the expansion of their portfolio Corruseal Group Joint CEOs Mehul Mehta
and Rajiv Mehta said: “The Enstra Mill fits perfectly with our strategy to backward integrate
and grow our business. Our commitment is to provide better packaging for a better world. We
are committed to remain a sustainable, innovative, service driven and world-class
manufacturer of packaging.”
                                                                                      ENDS

Johannesburg, 02 July 2015
Sponsor:
UBS South Africa (Pty) Ltd
                                                                            Page 2 of 2


NOTE TO EDITORS:
Corruseal Group: For over 40 years, Corruseal has been a pioneering manufacturer and
supplier of packaging. In this time, the company has grown rapidly through a combination of
organic growth, acquisitions and partnerships. With eight dedicated packaging companies in
the Group, Corruseal has acquired a national footprint and become a substantial
manufacturer and supplier of packaging to the South African market. www.corruseal.co.za

Sappi Limited (JSE: SAP), is a global company focused on dissolving wood pulp, paper pulp
and paper-based solutions to our direct and indirect customer base in over 100 countries
around the world. Headquartered in Johannesburg, South Africa, with over 13,000
employees and manufacturing operations on three continents in seven countries, customers
in 161 countries, and group sales of US$6 billion. Learn more about Sappi at
www.sappi.com.


 For further information             Issued by
 André F Oberholzer                  Brunswick
 Group Head Corporate Affairs        on behalf of Sappi Limited
 Sappi Limited                       Tel + 27 (0) 11 502 7300
 Tel +27 (0)11 407 8044
 Mobile +27 (0)83 235 2973
 Andre.oberholzer@sappi.com

 Elijah Masondo
 Corporate Communications Manager
 Sappi SA
 Tel +
 Mobile +
 Elijah.Masondo@sappi.com

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