15th Jul 2010 07:00
SISTEMA ACQUIRES 51% STAKE IN M2M TELEMATICS
Moscow, Russia - July 15, 2010 - Sistema (the "Group") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announced that it has acquired a 51% stake in OJSC M2M Telematics ("M2M Telematics"). Sistema plans to acquire a remaining 49% stake in the next two to five years in accordance with the agreement between the companies.
Founded in 2005, M2M Telematics is the leader in the Russian market of transport monitoring, navigation and telematics based on GLONASS/GPS technologies. The company has a broad portfolio of products for multiple market segments which it sells through an extensive distribution network comprising 56 regional partners, to a large customer base.
Sergey Boev, Vice President and Head of the 'High Technologies and Industry' Business unit at Sistema, commented: "This acquisition will provide Sistema with additional expertise and know-how to assist the federal network operator OJSC Navigation Information Systems (NIS) in implementing a public-private partnership project to create a national traffic accidents emergency response system under the ERA GLONASS brand."
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Notes to editor:
OJSC NIS is owned by RTI Systems (25.5%), SITRONICS (25.5%) and Federal State Unitary Enterprise "Russian Institute of Space Device Engineering" (49%).
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For further information, please visit www.sistema.com or contact:
| Sistema Investor Relations | Shared Value Limited | ||||
| Pavel Kim | Larisa Kogut-Millings | ||||
| Tel: +7 495 692 22 88 | Tel: +44 (0) 20 7321 5010 | ||||
Sistema is the largest public diversified financial corporation in Russia and the CIS, which manages 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$ 6.2 billion for the first quarter of 2010, and total assets of US$ 42.6 billion as at March 31, 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. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. 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
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