Page 162 - RusRPTSept22

EUR1.5bn (this does not account for the R16bn or circa EUR255mn cash balance, which will be transferred in the form of dividends to Mondi), to be paid in cash upon the deal's completion. The deal has yet to be approved by Russia's government commission on foreign investment and the Federal Antimonopoly Service. It also has to be approved by Mondi's shareholders. The announced deal value implies a 2021 EV/EBITDA multiple of 5.2 (assuming the company had a net cash position as of end-2021). Although this implies a discount to Segezha (which trades at a 2021 EV/EBITDA multiple of 6.2), we view the price for the asset as quite decent for the seller given the current geopolitical environment. In our view, the news is negative for Segezha Group sentiment-wise, as the company was expected to benefit from the sale of the Russian assets of foreign companies leaving Russia. The announced deal and its parameters indicate that there is a great deal of interest in such assets, both among companies in the sector and other players. As a reminder, the US-based Sylvamo Corporation, Finland's Stora Enso and Sweden's IKEA have all announced plans to leave Russia.
162 RUSSIA Country Report September 2022 www.intellinews.com