24th Jul 2009 14:15
Sistema (LSE:SSA), the largest diversified public financial corporation in Russia and the CIS, which manages large companies operating in different industries, today announced that it has obtained EUR120 million 3-year loan from the European Bank for Reconstruction and Development (the "EBRD"). Sistema also bought back from the EBRD its minority stake in SITRONICS. The EBRD elected to exercise its put option with respect to 3.074% stake in SITRONICS which was acquired in September 2006.
Sistema will use the loan proceeds to finance SITRONICS' existing and potential hi-tech projects.
Alain Pilloux, Business Group Director for Russia at the EBRD, commented: "Although the EBRD is no longer a shareholder in SITRONICS, this deal highlights our growing support for the company in completing its priority investments, as well as the Bank's continued involvement in its future."
Leonid Melamed, President and Chief Executive Officer of Sistema, added: "The EBRD remains one of the key partners of our Group. Due to the current market situation the format of the Bank's participation in SITRONICS' development has changed from equity to debt financing on favorable terms."
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-tech, oil and energy, radio and aerospace, banking, real estate, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 2.8 billion for the first quarter of 2009, and total assets of US$ 27.1 billion as at March 31, 2009. Sistema's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), under the symbol "AFKC" on the Moscow Interbank Currency Exchange (MICEX), and under the symbol "SIST" on the Moscow Stock Exchange (MSE).
The European Bank for Reconstruction and Development (EBRD) was established in 1991 by 60 countries and two international institutions in order to support the development of market economies and democracy in many countries between Central Europe and Central Asia.
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 2009
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