Paper and packaging group Mondi will sell 25,1% of its interest in Israeli-based Mondi Hadera Paper to its joint-venture partner Hadera Paper Ltd for €10,4-million.

Hadera Paper would then hold a 75% interest in the Israeli company, which owned a 145 000-t/y paper mill, which produced office and printing paper for the local market.

Mondi would retain a 25% interest.

The purchase consideration would be satisfied in cash and would be used to reduce Mondi’s net debt.

Mondi Hadera Paper’s gross assets amounted to €84,9-million at the end of December 2009, with a 2009 pretax profit amounting to €5,3-million.

With this divestiture, Mondi’s European uncoated fine paper business would focus its development around the core central European and Russian production base, while retaining an exposure to the value inherent in the Israeli company through its remaining interest.