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Johannesburg - Packaging firm Mpact (MPT) started trading on the Johannesburg Stock Exchange at R16 on Monday, as it seeks to grow its business after spinning off from paper maker Mondi [JSE:MND].
Mondi shares fell 2.6% in early trade after Mpact started trading.
“They unbundled Mpact, which knocked the price off Mondi. The spinoff means they no longer have the packaging business,” said Simon Hobday, a trader at Vunani.
Mondi shares were trading at R52.10, recouping some ground after falling as much as R49.50 earlier.
Mondi, which is also listed in London, announced in April that it would unbundle its packaging business to provide shareholders with a clear benefit as both businesses would take better advantage of their respective growth opportunities.
Mpcact produces corrugated products, has a plastics packaging business and is also involved in the production of carton board.
"The key challenge is to find growth in areas we operate (in). We are still looking at opportunities in other African countries," CEO Bruce Strong told journalists.
Mpact is focused on southern Africa, with most of its operations located throughout South Africa, and also has a presence in Namibia, Mozambique and Zimbabwe.
Mondi shares fell 2.6% in early trade after Mpact started trading.
“They unbundled Mpact, which knocked the price off Mondi. The spinoff means they no longer have the packaging business,” said Simon Hobday, a trader at Vunani.
Mondi shares were trading at R52.10, recouping some ground after falling as much as R49.50 earlier.
Mondi, which is also listed in London, announced in April that it would unbundle its packaging business to provide shareholders with a clear benefit as both businesses would take better advantage of their respective growth opportunities.
Mpcact produces corrugated products, has a plastics packaging business and is also involved in the production of carton board.
"The key challenge is to find growth in areas we operate (in). We are still looking at opportunities in other African countries," CEO Bruce Strong told journalists.
Mpact is focused on southern Africa, with most of its operations located throughout South Africa, and also has a presence in Namibia, Mozambique and Zimbabwe.
