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Sistema PJSFC (SSA)
Sistema divests a stake in MTS Bank
12-Feb-2019 / 19:00 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Sistema divests a stake in MTS Bank
Moscow, Russia - 12 Febuary 2019 - Sistema PJSFC ("Sistema" or the
"Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding
company, today announces that Sistema and its wholly-owned subsidiary
Sistema Telecom Assets LLC, divested a 39.5% stake in PJSC MTS Bank ("MTS
Bank"), one of Russia's 50 largest banks, to Mobile TeleSystems B.V., a
wholly owned subsidiary of PJSC MTS ("MTS") (NYSE: MBT, MOEX: MTSS), the
leading telecommunications operator and digital service provider in Russia,
for RUB 11.4 bn.
As a result of the transaction, Sistema's direct ownership in MTS Bank
decreased to 5.0% and MTS's stake increased from 55.2% to 94.7%. In July
2018, Sistema sold a 28.6% stake in MTS Bank to MTS for RUB 8.3 bn.
Mr. Vsevolod Rozanov, Sistema Managing Partner and Chairman of the Board of
Directors of MTS Bank, said,
"Consolidation of MTS Bank allows for deeper integration of the bank into
MTS's operations and speedier development of a digital banking services
ecosystem. Since 2011, when the partnership between MTS and MTS Bank was
launched, the two organisations have worked together to develop a wide range
of joint offerings - from digital payments to credit cards to point-of-sale
loans. Currently, joint products are available through more than 4,000 MTS
retail stores and on millions of mobile devices.
"Gradual transfer of Sistema's stake to MTS reduces integration risks. It
also enables MTS to continue its evolution as a digital service provider
also offering fintech products. At the same time, Sistema now monetises its
investment after successfully transforming the bank into a profitable
company and a leader in digital banking in Russia."
***
For further information, please visit www.sistema.com [1] or contact:
Investor Relations Public Relations
Nikolai Minashin Sergey Kopytov
Tel: +7 (495) 730 66 00 Tel.: +7 (495) 228 15 32
n.minashin@sistema.ru kopytov@sistema.ru
***
This announcement contains inside information. Full name and position of
person making the announcement - Nikolai Minashin, Director, Investor
Relations
***
Sistema PJSFC is a publicly-traded diversified Russian holding company
serving over 150 million customers in the sectors of telecommunications,
children's goods retail, paper and packaging, healthcare services,
agriculture, high technology, banking, real estate, pharmaceuticals and
hospitality. The company was founded in 1993. Its revenue in 2017 was RUB
704.6 bn; its total assets equalled RUB 1.1 trn as of 31 December 2017.
Sistema's global depositary receipts are listed under the "SSA" ticker on
the London Stock Exchange. Sistema's ordinary shares are listed under the
"AFKS" ticker on Moscow Exchange. Website: www.sistema.com [2].
ISIN: US48122U2042
Category Code: MSCH
TIDM: SSA
LEI Code: 213800JSZ2UUK4QQK694
Sequence No.: 7465
EQS News ID: 775103
End of Announcement EQS News Service
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(END) Dow Jones Newswires
February 12, 2019 11:00 ET (16:00 GMT)
