MPACT Plastic Containers

Returnable Transit Packaging [RTP]
…multi-trip, long life containers

RTP is here to stay. The new company, MPACT Plastic Containers,will offer the largest interconnected range of RTP packaging in South Africa. “Companies in supply chain logistics can no longer afford to overlook the long term advantages of plastic containers over disposable packaging”.

• overwhelming overall cost savings
• dramatic reductions in packaging waste
• superior and increased logistic efficiency

mpact – renewed with a new name

posted on 11 July 2011

Mondi packaging is one South Africa’s largest manufacturers in plastic and plastic packaging products, with total revenue of R6.26 billion in 2010. Thus, with a FRITDA growth of 18.8% over the past six years, we are positioned well to gain new revenue through a demerger and a new name – Mpact.

When the company made the name change public in May 2011, Mondi Packaging CEO Bruce Strong said: “I am excited about the increased flexibility to take advantage of our growth opportunities. Our leading market positions and experienced management team ensure we are well placed to continue the company’s track record of profitable growth as a standalone packaging company under our new name Mpact.”

Mpact consists of four parts: plastics, corrugated, paper and recycling, all with the single purpose to provide excellent service and superior products that our clients have come to know and expect from us. Thus, with the new Mpact name, the company promises to make an IMPACT on our clients’ business through dedication, trust and passion. Mpact is listed on the Johannesburg Stock Exchange since 11 July 2011 under the listing code “MPT”, also giving the public the opportunity to invest in the growth of our company.

The principal rationale for the separate listing is to allow us to break away from the constraint of a shareholder with different strategic priorities, so that Mondi’s Packaging division can pursue its own growth strategy to benefit all stakeholders. Mpact believes that with the knowledge and experience we have gained over the years we are well positioned to forge ahead with commitment, dedication and focus in the packaging industry. We believe that Mpact is the perfect platform to achieve these goals.

Mondi Packaging has 22 manufacturing operations and 29 operating sites in Southern Africa. As at the end of 2010, it employed around 3,500 people. Prior to the demerger, Mondi Limited and Shanduka subscribed for new Mpact Shares. With this share subscription, certain shareholder loans made to Mpact will be repaid using the cash proceeds received from the new share subscription, together with the newly arranged borrowing facilitie. The Mpact Shares held by Mondi Limited’s Employee Share Ownership Trust will be acquired by the Mondi Group, so that the Mondi Group’s shareholding in Mpact will increase to 89.55% of the total number of Mpact Shares. Thus, the Shanduka’s shareholding will reduce to 10.45% of Mpact.

The demerger is implemented through a dividend in specie from Mondi Limited. Shareholders’ entitlement to the dividend in specie is on the basis that each shareholder receives a single Mpact Share for every one Mondi Limited ordinary share held.

The Mpact brand is our company’s strategy to ensure that we “keep with the times”. With our signature bright green colour, we communicate our dedication to sustainability and our bright and vibrant nature.

Mondi BEE rating – 69%