GO
Loading...

UPDATE 1-Mondi sells stake in money-losing UK newsprint firm

* Sees loss of 71 mln euros

* Svenska Cellulosa also sells stake

(Adds details)

JOHANNESBURG, Oct 2 (Reuters) - South African paper firm Mondi Group has sold its 50 percent stake in its money-losing UK newsprint business to private equity firm Martland Holdings, and would likely see a loss of 71 million euros on the deal.

Mondi , which is focusing more on fast-growing businesses such as consumer packaging, said in a statement on Tuesday it had sold its stake in Aylesford Newsprint Holdings, a supplier of newsprint to major British newspapers.

Swedish firm Svenska Cellulosa has also sold its half of the business to Martland, Mondi said.

Mondi said the sale was for a "nominal sum" and it would book a loss of about 71 million euros on the transaction, with a negative cash flow impact of 17 million euros.

Mondi said in July it would buy German packaging firm Nordenia International from Oaktree Capital in a $782 million deal to give it a bigger presence in packaging for everything from pet food to chocolate bars.

Shares of the company were little changed at 83.75 rand in Johannesburg trade at 1355 GMT.

(Reporting by David Dolan; Editing by Jon Herskovitz)

((david.dolan@thomsonreuters.com)(+27 11 775 3150)(Reuters Messaging: david.dolan@thomsonreuters.com@reuters.net))

Keywords: MONDI/