Converting

Mondi Group today published the prospectus for its proposed demerger from Anglo American.

Mondi will be split into a group with dual listings in South Africa and London. Trading in the new company’s shares is expected to start on 3 July.

Anglo American shareholders will be asked to approve the demerger at an extraordinary general meeting in London on 25 June. This will be followed on 2 July by a court hearing seeking a reduction in capital of the London-listed operation, Mondi plc.

Mondi, which employs 34,000 staff at 112 locations in 34 countries, expects to enter the demerger with approximately £1.02bn in debt.

The packaging group hopes the split from Anglo American’s mining operations will make it easier for investors to evaluate its potential.

For every 100 existing Anglo American ordinary shares they hold, Anglo American shareholders are set to receive 91 new Anglo American shares, 10 shares in Mondi’s South Africa business, and 25 in the UK-listed company.

Sir John Parker and Cyril Ramaphosa will be joint chairmen of the group.

David Hathorn will be chief executive and Paul Hollingworth chief financial officer.