Mondi’s unbundled packaging unit Mpact to list in July
Paper and packaging group Mondi remained confident that the company would maintain an acceptable broad-based black economic empowerment (BBBEE) rating following the demerger and the separate listing of Mondi Packaging South Africa (MPSA) as Mpact on the JSE, group corporate affairs manager Lora Rossler told Engineering News Online.
On Tuesday, the group announced that MPSA would change its name to Mpact, which would be effective once listed under the containers and packaging sector of the JSE main board on July 11.
Mondi Packaging CEO Bruce Strong said the planned listing would allow more flexibility to take advantage of growth opportunities. “Our leading market positions and experienced management team ensure we are well placed to continue the company’s record of profitable growth as a standalone packaging company under our new name Mpact.”
MPSA has two primary shareholders, Mondi with a current 69,99% share and black-owned and managed group Shanduka Resources, headed by executive chairperson Cyril Ramaphosa, with a 25,01% share.
Mondi currently has a level 3 contributor rating. “Apart from ownership, the company also has weighting in enterprise development, preferential procurement, skills development, employment equity and socioeconomic development. We can’t anticipate our new rating, but expect an acceptable one,” Rossler said.
Prior to the demerger and listing of Mpact, certain Mondi and Shanduka shareholder loans would be repaid using the cash proceeds received from a new share by both companies. Shanduka shareholders’ loans to be rapid amounted to R168-million.
Meanwhile, the demerger and listing would enable Mpact to push forward with the expansion of its rigid plastics business, thereby diverging from Mondi’s differing strategic priorities. “The demerger would enable the Mondi group and Mpact to take better advantage of their own growth opportunities,” the company said in a statement.
MPSA is a southern African focused company, with operations in South Africa and single plants in Namibia, Mozambique and Zimbabwe. It produces corrugated packaging products and cartonboard.
MPSA’s derived total revenues of R6,26-billion in 2010, of which its African operation, excluding South Africa, contributed 9% to the revenue.