Mondi simplification of corporate structure becomes effective
JOHANNESBURG - Packaging and paper group Mondi said on Monday it had completed the simplification of its dual-listed structure into a single holding company after terminating arrangements between Mondi Plc and Mondi Limited.
In November 2018, the boards of the two entities announced a proposal to simplify the existing group structure into one, under Mondi plc.
The move is aimed at simplifying cash and dividend flows, increasing transparency, removing the complexity associated with a dual listing structure and enhancing strategic flexibility of the company.
It also aims to facilitate continued investment in the company's South African operations, estimated at over R8 billion over the next five years, including the ongoing investment in forestry assets and modernisation of Mondi's containerboard and paper assets in the country.
Mondi plc will continue to have a premium listing on the London Stock Exchange and will have an inward secondary listing on the Johannesburg Stock Exchange quoted in rand.
Mondi Limited shareholders will receive one new Mondi plc Share in exchange for each ordinary share held.