Mondi Group, an office paper supplier, is spinning off its South African packaging division, Mondi Packaging South Africa (MPSA), Financial Times reports. As part of the demerger, shareholders in Mondi’s South African quoted vehicle will receive shares in Mondi Group and the newly-listed MPSA. Mondi will raise its stake in MPSA to 90% from 70% ahead of the spinoff by recapitalizing the company. Shanduka Group will lower its stake in the company from 25% to 10%, adds Bloomberg. Rothschild is advising Mondi, while Rand Merchant Bank is acting as financial adviser to MPSA.
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