Sistema divests a stake in MTS Bank

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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: [phone] Tel.: [phone] 
 
  [e-mail]       [e-mail] 
 
             *** 
 
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 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=f1efd490ef237092d4033512d119fe99&application_id=775103&site_id=vwd&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6e566001103bf8b2bd1a5427ea3e04fe&application_id=775103&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

February 12, 2019 11:00 ET (16:00 GMT)