Mondi is selling its central European packaging paper merchant for EUR 60m (£51m) as part of its divestment programme to focus on core business. The Anglo-South African firm has signed an agreement to sell 100% of its shares to paper and board trading firm Heinzel Group for a cash consideration of EUR 60m. Mondi said the business had made a pre-tax loss of EUR 6.5m last year and expected to make a EUR25m loss by selling assets that were worth EUR 151m. Chief executive David Hathorn said the sale was "an important step that will allow us to focus on our core business". The divestment comes two weeks after Mondi sold three corrugated box plants in the UK to Smurfit Kappa and took control of the Irish firm's sack converting operations in Western Europe. The latest deal is subject to approval by the relevant competition authorities. Europapier supplies a range of graphic, packaging and office papers in Russia and a number of central European countries such as Austria, the Czech Republic, Serbia and Slovenia.
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