14th May 2012 07:00
Sistema JSFC ("Sistema") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, announces that it has signed an agreement with OJSC INTER RAO UES ("INTER RAO UES") regarding the terms of the reorganisation of OJSC Bashkirenergo ("Bashkirenergo"). Sistema Group presently owns 50.53% and INTER RAO UES owns 25.08% of the voting shares of Bashkirenergo.
Following the reorganisation, Bashkirenergo will be split into JSC Bashkirian Power Grid Company, which will combine power grid assets, and OJSC Bashenergoactiv, which will integrate power generation assets. In accordance with the agreement, INTER RAO UES will own more than 75% of the voting shares of Bashenergoactiv, while more than 75% of the voting shares of Bashkirian Power Grid Company will be owned by Sistema. INTER RAO UES will also pay Sistema an amount of up to RUB 14 billion in cash and promissory notes.
The decisions regarding the reorganisation of Bashkirenergo will be submitted for approval at Extraordinary General Meetings of Sistema and Bashkirenergo shareholders, which are scheduled for June 2012. If approved by the EGMs and if various additional conditions can be met (including receipt of necessary government approvals, execution of additional agreements, and other conditions), the deal is expected to be completed by the last quarter of 2012 or first quarter of 2013 after all reorganisation procedures have taken place.
Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented: "The reorganisation of Bashkirenergo is in line with Sistema's strategy to develop its energy assets. It represents an effective monetisation of Sistema's stake in Bashkirenergo's power generation assets and removes various legislative limitations for the further development of our power grid business."
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For further information, please visit www.sistema.com or contact:
| Investor Relations | Public Relations | |||
| Evgeniy Chuikov | Vsevolod Sementsov | |||
| Tel.: +7 (495) 692 1100 | Tel.:+7 (495) 730 1705 | |||
Sistema is the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 33.0 billion for the full year of 2011, and total assets of US$ 43.9 billion as at December 31, 2011. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the MICEX-RTS Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE). Sistema was ranked number 342 in the 2010 edition of the Fortune Global 500 list. Website: www.sistema.com
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies.
Copyright Business Wire 2012
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