8th Dec 2010 15:15
SISTEMA ANNOUNCES SBERBANK'S ACQUISITION OF STAKE IN DETSKY MIR-CENTER
Moscow, Russia - December 8, 2010 - Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is the major shareholder of, companies operating in different industries, today announced that Sberbank has completed the acquisition of 25%+1 share stake in OJSC Detsky Mir-Center ("Company"). Sberbank acquired the stake in the Company through the purchase of an additional share issue in a private placement, for a total consideration of approximately RUB 3.4 billion.
The proceeds of the additional share issue will be used to strengthen the Company's capital structure and to develop and expand its retail chain, with its selection of safe, affordable, quality children's goods, throughout the country.
The strategic objective of the shareholders is to use the proceeds of the investment to grow the value of the business, with the ultimate aim of attracting a strategic investor or achieving a similar liquidity event. If such liquidity event is not achieved within three years, and under certain other conditions, Sberbank will have the right to sell its stake in the Company to Sistema. The parties also agreed to certain pre-emptive and tag-along and drag-along rights in relation to their respective stakes in the Company. As a 25%+1 shareholder of the Company, Sberbank is able to elect two out of eight board members, and Sberbank's two representatives have already joined the Company's board.
***
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$ 6.9 billion for the second quarter of 2010, and total assets of US$ 40.2 billion as at June 30, 2010. 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 RTS Stock Exchange, under the symbol "AFKC" on the MICEX Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE).
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.
Copyright Business Wire 2010
Related Shares:
SSA.L