The listing of Mpact, previously called Mondi Packaging South Africa (MPSA), on the JSE would enable the packaging company to take further advantage of growth opportunities, CEO Bruce Strong said on Monday.
Shares in Mpact started trading at R16 apiece when the market opened in Johannesburg, but traded at R13.99 by noon.
Mondi announced in April that it would separate its MPSA from the group through a demerger to give the South African unit more flexibility to develop its core growth areas. The demerger is effective from July 18.
Strong said Mpact had identified opportunities for its rigid plastics, paper-based packaging and packaging paper divisions, both in South Africa and Africa. The company would pursue a balanced mix of organic, greenfield and acquisitive growth, he added.
In 2005, Mpact posted R2.8-billion in revenue, which grew to R5.7-billion in 2010. “Becoming an independent listed business, marks a new beginning for Mpact. The company will continue to leverage its position locally and focus on growing revenue and profitability,” Strong said.
Mpact has 22 manufacturing operations and 29 operating sites based in South Africa, Namibia, Mozambique and Zimbabwe, and 3 500 employees.