Packaging firm Mondi to sell its largest Russian plant for $1.6 bln

British paper and packaging firm Mondi agreed on Friday to sell its largest plant in Russia to an investment vehicle owned by Russian billionaire Viktor Kharitonin for 95 billion roubles ($1.6 billion).

Mondi’s London-listed shares jumped more than 7% on the news, as it said it would distribute the proceeds from the sale of Mondi Syktyvkar to shareholders.

Mondi also has three much smaller plants in Russia that are not affiliated to Syktyvkar and not part of Friday’s deal with Augment Investments, it said.