Mondi would sell about half its stake in an Israeli joint venture for €10.4 million (R96m) to help pay down debt, the pulp and paper maker said yesterday.
Mondi said it would sell 25.1 percent of Mondi Hadera Paper to its partner in the venture, Israel's Hadera Paper.
The Israeli company will then hold 75 percent of the joint firm, while Mondi will be left with a quarter.
The company said Mondi Hadera was a non-integrated paper mill located in Israel with the capacity to produce 145 000 tons of paper a year.
The venture made a pretax profit of €5.3m last year. Mondi, which is also listed in London, last month posted a return to half-year profit and forecasted a strong second half, citing better demand and prices.
Shares of Mondi were up 0.6 percent at R54.75 yesterday. - Reuters