Mondi Share Discussion Threads

[alotto] 23/3/2024 13:11

The share price fluctuations are not necessarily indicative of how good the deal is. Mondi and Smith have similar PBT and Mondi is taking the larger share of the merged entity. I own both smith and mondi and i see a ton of opportunities for shareholders of both sides.
Perhaps it will give scope for more acquisition. Smurfit Kappa may be next?!

[grahamg8] 23/3/2024 12:06

The share price movement seems to indicate it is a terrible deal for MNDI, and the SMDS shareholders are laughing all the way to the bank. Over a five year timescale the shares have kept a pretty close alignment. That is up until around 21 January. On a three month basis SMDS is up 11.93% and MNDI down 18.88% for a total gap of 30%. The Directors should be looking for a way to ditch the deal, or at least renegotiate the terms. Otherwise they may find it being rejected at an EGM.

[essentialinvestor] 20/3/2024 23:52

Just jeeping an eye on this for now.

The acquisition, if it completes, arguably raises the risk profile.

[alotto] 20/3/2024 19:53

Why the decline tho

[essentialinvestor] 20/3/2024 19:29

Some support around £13.15 type area.

[enami] 08/3/2024 12:56

Unfortunately the Mondi RNS does not appear in the ADVFN system.
Here are some of the details

The Boards of Mondi plc ("Mondi") and DS Smith Plc ("DS Smith") are pleased to announce that they have reached an agreement in principle on the key financial terms of a possible all share offer by Mondi for DS Smith, pursuant to which Mondi would acquire the entire issued and to be issued share capital of DS Smith (the "Combination").

Key Terms of the Combination

Mondi shareholders would own 54 per cent. and DS Smith shareholders would own 46 per cent. of the issued and to be issued share capital of Mondi;
Based on Mondi's closing share price of 1,381 pence per share on 7 February 2024 (being the day prior to the commencement of the offer period), the terms of the Combination would represent an implied value of 373 pence per DS Smith share and a premium of 33 per cent. to DS Smith's closing share price of 281 pence per share on 7 February 2024 (being the day prior to the commencement of the offer period);
Philip Yea would be Chair, Andrew King would be the Chief Executive Officer and Mike Powell would be the Chief Financial Officer of the enlarged Mondi Group; and
Three Non-Executive Directors of DS Smith are expected to join the enlarged Mondi Group Board.

[elsa7878] 08/3/2024 09:53

It's agreed in principle but they still haven't finished their due diligence. Hence the discount.

[nightspot] 08/3/2024 09:43

The offer was valued at 373 when Mondi share price was 1381. Mondi currently at 1350, so offer value is 368. Current price is 350. An oddly large discount I would have thought.

[clinton baptiste] 07/3/2024 20:01

As a shareholder of both companies I'm very happy with this proposed tie-up, especially as it will be under Mondi management - I think King and Powell have done a great job in the past few years (esp. extricating from Russia) under difficult circumstances. It looks like a fair deal to me.
And thanks to Mr. Roberts &c for doing the right thing for DS Smith shareholders as he rides off into the sunset.

Moorsie, thanks for your insight over the years.

[alotto] 07/3/2024 19:47

33% premium of a company (Smith) with a PE of barely 6. Of course you happily buy a company with a PE of 9 (6 +30% = 9). That's still cheap! Quite a deal for Mondi. Smith wouldn't pay 33% premium for Mondi. Mondi has a PE of 15, add the 33% premium you get it at a PE of 20! Not just as attractive. In fairness Mondi should pay more, possibly a 100% premium, valuing Smith DS at a PE of 12.

[dexdringle] 07/3/2024 19:05

Disastrous takeover. I'd much rather DS Smith were paying a 33% premium to buy Mondi.

[justiceforthemany] 07/3/2024 19:05

Is this a good deal for Mondi then? share price to rise?

[moorsie2] 07/3/2024 17:54

Comgrations to the CEO and Board this is a great deal for shareholders of both companies

[enami] 05/3/2024 09:16

PRESS: Mondi sweetens DS Smith all-share bid - Bloomberg(Alliance News) Mondi PLC has increased its takeover proposal for packaging peer DS Smith PLC, Bloomberg reported on Friday.

Citing people with knowledge of the matter, Bloomberg reported Mondi improved its indicative all-stock proposal "several days ago".

DS Smith still sees that bid as insufficient, however, Bloomberg reported.

[enami] 22/2/2024 16:57

The Board has recommended a final 2023 ordinary dividend of 46.67 euro cents per share. The final dividend, together with the interim dividend, amount to a total dividend for the year of 70.0 euro cents per share, in line with 2022 (70.0 euro cents per share).

Ex Dividend Thursday 4 April 2024
Paid on Tuesday 14 May 2024.

[moorsie2] 22/2/2024 08:04

Hugely impressive cash generation.

Balance sheet primed for more corporate action..

[moorsie2] 15/2/2024 11:32

5 days till results day... Maybe we get a bit of pick up in the share price over the coming days

[enami] 08/2/2024 14:35

There is in fact an RNS from Mondi ref the DS Smith offer though for some reason not yet published on ADVFN
.
"Mondi Plc - Statement regarding possible all share combination with DS Smith plc"
,

[enami] 08/2/2024 14:27

Sorry have been away for 10 days, hard to find the special dividend exchange rate as the Mondi RNS is not published here. Had to find it on the Mondi website...
(Extract)
Accordingly, it is confirmed that sterling dividend payments will be converted at a rate of EUR 1 to GBP 0.85298. Therefore, the equivalent special dividend in pence per ordinary share will be 136.4768.

[elsa7878] 08/2/2024 14:16

Especially when it will stretch the balance sheet days after agreeing a special dividend....odd timing.

[dexdringle] 08/2/2024 13:45

What a shame it isn't the other way around.

Would rather somebody overpaid for Mondi than Mondi overpaying for somebody else.

[enami] 08/2/2024 13:35

No RNS here yet but from DS Smith



The Board of DS Smith notes the recent media speculation and confirms that it has received a highly preliminary expression of interest from Mondi plc ("Mondi") regarding a combination with DS Smith. The Board of DS Smith understands that Mondi is considering a possible offer for DS Smith although no proposal has been received at this stage.

[dexdringle] 18/1/2024 19:01

The whole share consolidation malarkey does seem somewhat unnecessary.

In their own Q&A about this they say:

"When companies like Mondi pay a considerable proportion of their market capitalisation back to shareholders as a special dividend, it’s common to combine this with a share consolidation. What we’re trying to do is keep our share price at approximately the same level before and after payment of the special dividend. If we paid the special dividend and didn’t combine this with a share consolidation, the share price would be likely to reduce"

What we're TRYING to do 🤣

Who cares if the share price reduces. It's six of one and half a dozen of the other. If, on the other hand, the directors bonuses depend on EPS it's quite handy to suddenly have 9% fewer shares in issue.....

[contrarian joe] 18/1/2024 17:18

Not impressed at all with this consolidation,it seems to me they've been won over by greedy bankers fees,as a shareholder i'm paying for those fees.Will sell my shares at an opportune time on the grounds of bad management who pick pocket their owners.

[enami] 16/1/2024 12:35

Also worth mentioning for those not familiar with share consolidations.

Fractional Entitlements

The Share Consolidation will replace every 11 Existing Ordinary Shares with 10
New Ordinary Shares. If an individual shareholding is not exactly divisible by
11, the Shareholder in question will be left with a fractional entitlement.
Fractional entitlements arising from the Share Consolidation will not be
delivered to Shareholders but will instead be aggregated and sold in the market,
the proceeds of which will be dealt with as outlined below:

(A) Shareholders on the UK Register

- The net proceeds of the sale, after the deduction of any expenses
and/or commission associated with such sale (including any related VAT), will be
paid in due proportion to the relevant Shareholders.

- Payment of fractional entitlements (where applicable) is expected to
be effected on 12 February 2024. CREST members will receive their fractional
entitlement payment via their CREST accounts. Shareholders on the UK Register
who are not CREST members will receive their payment by cheque.