Sistema PJSFC (SSA)
Sistema PJSFC: Sistema to acquire pharmaceutical companies Sintez and Biocom
from Marathon Group
07-Jun-2019 / 12:37 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Sistema to acquire pharmaceutical companies Sintez and Biocom from Marathon
Group
St. Petersburg, Russia - 7 June 2019 - Sistema PJSFC ("Sistema" or the
"Corporation") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian
holding company, announces the signing of a binding agreement to acquire
from the investment company Marathon Group stakes in two pharmaceutical
companies - Sintez Kurganskoe Medical Products and Goods Company ("Sintez")
and Biocom ("Biocom"). The agreement was signed at the St. Petersburg
International Economic Forum.
The transaction is expected to close within three months, following
approvals from the Federal Anti-Monopoly Service and completion of certain
other conditions.
The purchase price will depend upon completion of a number of conditions
specified by the parties.
Following the acquisition, Sintez and Biocom are expected to be integrated
into Alium, a pharmaceutical company being created through the merger of OBL
Pharm and Binnopharm. The combination with Sintez and Biocom will make Alium
a top-3 Russian pharmaceutical company in the commercial segment. Alium's
portfolio will include more than 500 products and its manufacturing capacity
will consist of six production facilities in Moscow, the Moscow region,
Kurgan and Stavropol.
Andrey Dubovskov, President and Chief Executive Officer of Sistema, said:
"The acquisition of Sintez and Biocom represents an attractive investment
opportunity for Sistema. Both companies possess solid market positions.
Moreover, we see an excellent opportunity to generate synergies through
their combination with OBL Pharm and Binnopharm. The transaction will lead
to the creation of one of Russia's largest pharmaceutical companies,
possessing a diversified product portfolio, experienced management team,
powerful manufacturing base as well as significant R&D potential. The merger
will also drive optimisation of marketing and promotion costs, cuts in
administrative expenses and an expansion of the sales geography, which in
sum will result in growth in the value of Sistema's stake in the business."
Alexander Vinokurov, President of Marathon Group, said:
"Over the time that Marathon Group has owned Sintez, we have done a great
deal to transform the asset: the enterprise was put on a new growth
trajectory focused on expanding its portfolio of drugs in the commercial
segment, production capacity was modernised and strengthened and record
financial results were delivered. We are pleased that our assets will become
part of a new ambitious project, and we wish the Sistema team success in
this."
***
Sintez Kurganskoe Medical Products and Goods Company is one of Russia's ten
largest pharmaceutical companies by pharmaceutical product output. Sintez
accounts for approximately 3% of the total Russian pharmaceutical market,
and 23% of the market for antibiotics. The company's product portfolio,
which includes more than 300 drugs and medical products, is focused on three
therapeutic areas: antibiotics, pulmonary medicines, and medicines for
treatment of the musculoskeletal system. More than 30% of the company's
production is manufactured using its own compounds. The company introduces
10-15 new medical products to the market every year. 2018 revenue was RUB
8.5 billon.
Biocom specialises in the production of non-patented antibiotics and
medicines to treat cardiovascular and central nervous system diseases. The
company's portfolio consists of approximately 40 products.
Sistema is a publicly-traded diversified Russian holding company serving
over 150 million customers in the sectors of telecommunications, high
technology, financial services, retail, paper and packaging, agriculture,
real estate, tourism and medical services. The company was founded in 1993.
Revenue in 2018 was RUB 777.4 bn; total assets equalled RUB 1.5 trn as of 31
December 2018. 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 the Moscow Exchange. Website:
www.sistema.com [1]
Marathon Group was founded in 2017 by Alexander Vinokurov and Sergei
Zakharov, who were subsequently joined by partner Andrey Tyasto. The company
focuses on strategic investments in FMCG, retail, pharmaceuticals,
infrastructure and agriculture; growing and developing the assets it
acquires; and subsequently exiting these investments. The sub-holding
Marathon Pharma combines pharmacy chain Mega Pharm (A-Mega, Da-Zdorov! and
Azbuka Life), stakes in Bentus Laboratories (which produces products under
the Sanitelle brand) and Fort (previously it also included distributor SIA
Group, Sintez and Biocom); sub-holding Marathon Retail holds stakes in
grocery store chain Magnit and Russia's largest KFC franchise; Marathon
Sport operates the fitness club Sektsia, training service IQ Sports and the
Marathon-Tula Cycling Team.
***
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
ISIN: US48122U2042
Category Code: MSCH
TIDM: SSA
LEI Code: 213800JSZ2UUK4QQK694
Sequence No.: 9502
EQS News ID: 821297
End of Announcement EQS News Service
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(END) Dow Jones Newswires
June 07, 2019 05:38 ET (09:38 GMT)
