17th Sep 2013 16:30
FOR IMMEDIATE RELEASE September 17, 2013
SISTEMA ACQUIRES UNITED PETROCHEMICAL COMPANY
Moscow, Russia – September 17, 2013 – Sistema JSFC (“Sistema”, the “Group” or the “Company”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces the acquisition of a 98% stake (resulting in effective ownership of 100%) in OJSC United Petrochemical Company (“UPC”) from the Group’s subsidiary JSOC Bashneft (“Bashneft”) for RUB 6.2 billion. The value of the stake is based upon an independent appraisal carried out by an international consultant.
UPC is a vertically integrated petrochemical group which owns four enterprises located in the Bashkortostan region: Ufaorgsintez, Tuimazinkoye and Shkapovskoye Gas Processing Plants and Bisphenol-A plant. In 2012, UPC generated a combined revenue of RUB 17.9 billion.
Ufaorgsintez is one of the leading petrochemical producers in Russia. Polypropylene and ethylene account for over 50% of its production line, while 90% of total sales are made to the domestic market. The company benefits from an established production chain with feedstock sourced from Bashneft’s Ufa refineries, the Tuimazinskoye and Shkapovskoye Gas Processing Plants, which produce liquid petroleum gas and nafta from stable natural gasoline (SNG).
UPC’s development plans will be financed partly by its own cashflow, as well as debt financing and joint venture initiatives with leading international petrochemical companies.
Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:
“This acquisition is a natural expansion of our energy investments. UPC is already one of the leading petrochemical producers in Russia with a reliable supply of raw materials from Bashneft’s downstream operations and competitive production costs. Combined with Russia’s increasing consumption per capita of petrochemical products, UPC provides Sistema with a solid entry into an attractive and growing sector.
UPC’s development plans currently envisage organic growth focused on existing and new production lines, as well as commenced discussions with leading international petrochemical groups on possible joint venture opportunities”.
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For further information, please visit www.sistema.com or contact:
| Investor Relations Evgeniy Chuikov Tel: +7 (495) 692 11 00 | Public Relations Ekaterina Tsukanova Tel.: +7 (495) 228 1536 |
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$ 8.5 billion for the second quarter of 2013, and total assets of US$ 44.4 billion as at June 30, 2013. 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. 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
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