Mondi offers €280m for the rest of Mondi Swiecie

Paper and pulp group Mondi on Thursday made an all-cash offer of €16.48 a share for the 17-million shares (34%) it does not already own in its Polish operation, Mondi Swiecie.

The offer comprises a premium of 15.6% over the last three months’ average price of €14.26 a share and a premium of 4.1% over the last six months’ average price of €15.82 a share.

Mondi Swiecie is an integrated manufacturer of virgin and recycled containerboard. In 2011 it produced 1.33-million tons of containerboard. The company employs about 1 020 people under MD Maciej Kunda.

This acquisition would bring Mondi Swiecie into the full-ownership of the Mondi group, streamlining its corporate structure.

Mondi Swiecie also announced its financial results for the year ended December 31 on Thursday, showing profit of €96-million.

Under the offer, the implied equity value of the whole of Mondi Swiecie is €824-million representing earnings before interest, taxes, depreciation and amortisation multiplied by about 5.5 times.

The offer was expected to conclude in mid-April. Full acceptance of the offer would result in Mondi paying €280-million. The offer is conditional on Mondi achieving minimum acceptances of 14% of Mondi Swiecie shares, to bring Mondi’s total interest in the company to no less than 80%.

“After completion of the offer, Mondi intends to delist Mondi Swiecie from the Warsaw stock exchange,” the company said in a statement.

The offer will be funded by Mondi’s existing cash resources and from existing committed bank facilities available to it.