2nd Apr 2013 10:00
SISTEMA’S BINNOPHARM AND ALIUM GROUP OF COMPANIES
COMBINE ASSETS
Moscow, Russia – April 02, 2013 – Sistema JSFC (“Sistema”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that its subsidiary CJSC Binnopharm (“Binnopharm”) and Alium Group of Companies (“Alium”), a producer of infusion solutions and blood substitutes, have completed a deal that combines their assets. The deal was structured as an additional share issuance, with Sistema participating cash and Zenitko Finance Management LLC with Alium’s assets. The combined entity will operate under the Binnopharm name.
After combining Binnopharm’s and Alium’s assets, Binnopharm represents a group consisting of two large production complexes that meet high European standards in pharmaceutical production and several distribution companies.
The additional share issuance totalled approximately RUB 1.749 billion. As a result of the deal, Sistema has decreased its shareholding in Binnopharm from 100% to 74%. Zenitko Finance Management LLC holds a 26% stake in Binnopharm.
Mikhail Shamolin, the President and Chief Executive Officer of Sistema, commented: “The combination of Binnopharm’s and Alium’s assets into Binnopharm will enable the integrated company to expand its business by entering new segments which cover the medicine in most demand. As well as enhancing the production capacity, the deal will help to strengthen the company’s management team and its distribution network, and it will reduce commercial and G&A expenses. Going forward, as part of the internal reorganisation of Binnopharm, we plan to simplify its ownership structure, optimize its cost structure and increase transparency at the company.”
***
For further information, please visit www.sistema.com or contact:
| Investor Relations Evgeniy Chuikov Tel.: +7 (495) 692 1100 | Public Relations VsevolodSementsov Tel.:+7 (495) 730 1705 |
Sistema is the largest publicly-traded diversified holding company 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$ 8.8 billion for the third quarter of 2012, and total assets of US$ 46.3 billion as at September 30, 2012. 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 315 in the 2011 edition of the Fortune Global 500 list. Website: www.sistema.com
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
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 2013
Related Shares:
SSA.L