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Sistema PJSFC (SSA)
Sistema acquires stake in Ozon from MTS
19-Feb-2019 / 19:45 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 acquires stake in Ozon from MTS
Moscow, Russia - 19 February 2019 - Sistema PJSFC ("Sistema" or the
"Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding
company, announces the signing of a binding agreement to acquire an 18.7%
stake in Ozon Holdings Limited ("Ozon"), the leading Russian multi-category
online retailer, from MTS PJSC ("MTS") (NYSE: MBT, MOEX: MTSS), the leading
telecommunications operator and digital service provider in Russia, for RUB
7.9 bn. Shares will be transferred to Sistema through Dega Retail Holding
Limited, wholly-owned subsidiary of MTS. The transaction is expected to
close in early March 2019.
Payment for the shares will be made in three instalments, with the third
instalment being paid in July 2021. A market interest rate will apply.
As a result of the transaction, Sistema's direct ownership stake in Ozon
will amount to 19.3%. Sistema has additional exposure to Ozon through
Sistema_VC, a venture capital fund focusing on investments in growth-stage
technology companies, which holds a 16.3% stake in Ozon. Sistema_VC is
80%-owned by Sistema.
Ozon is one of Russia's largest e-commerce platforms, ranked second by
number of orders and seventh by revenue in the E-Commerce Index Top 100 for
2017. Ozon offers customers more than 1.6 million SKUs across 23 categories.
As of the end of 2018, Ozon operated eight fulfilment centres occupying a
total of more than 100,000 sq m, allowing the company to deliver products to
40% of the Russian population the day after an order is placed. In December
2018, the company set a record for orders processed - 138,000 in a single
day. In 2019, the company plans to more than double its logistics
infrastructure by expanding its flagship distribution centre in Tver and
opening a new 100,000 sq m fulfilment centre in the Moscow region.
In 2018, Ozon's business grew at its fastest rate in the last decade. In the
first half of 2018, revenue increased by 76% year-on-year. Some product
categories - including clothing and foodstuffs - posted revenue increases in
excess of 100%.
Alexei Katkov, Managing Partner at Sistema, said:
"We believe Russian e-commerce has excellent growth potential. The current
level of e-commerce penetration in Russia (5% of total retail turnover) is
well below global averages (10-15% in developed markets and 20% in China and
South Korea) and is forecast to double over the next five years.
"Sistema's shareholding in Ozon represents a strategic bet on this
high-growth market. Ozon's strengths include its wide product assortment,
wholly-owned logistics infrastructure, well-recognised brand, best-in-class
customer support and a recently launched marketplace for third-party
sellers. Ozon has a strong management team that has already delivered
impressive growth rates and demonstrated ability to achieve technological
and market leadership in the market that is highly fragmented and currently
undergoing consolidation.
"As one of Ozon's largest shareholders, we will continue to support the
company in executing on its market consolidation strategy and we will seek
to further increase our exposure to this high-growth business."
***
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.: 7563
EQS News ID: 777779
End of Announcement EQS News Service
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(END) Dow Jones Newswires
February 19, 2019 11:45 ET (16:45 GMT)
