Sistema PJSFC: Sistema completes transaction to become shareholder of pharmaceutical businesses Sintez and Biocom

Sistema PJSFC (SSA) 
Sistema PJSFC: Sistema completes transaction to become shareholder of 
pharmaceutical businesses Sintez and Biocom 
 
08-Aug-2019 / 09:50 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 completes transaction to become shareholder of pharmaceutical 
      businesses Sintez and Biocom 
 
 Moscow, 8 August 2019 - Sistema PJSFC ("Sistema") (LSE: SSA, MOEX: AFKS), a 
  publicly traded diversified Russian holding company, announces that it has 
    completed the acquisition, together with a financial partner, of a 46.5% 
 equity stake in Sintez Kurganskoe Medical Products Company ("Sintez") and a 
   75.1% equity stake in Biocom, through holding company Sinocom Investments 
Limited ("Sinocom"), from investment firm Marathon Group for a consideration 
             of RUB 11.8 billion. 
 
  The 46.5% stake in Sintez was acquired by Sinocom for RUB 8.2 billion in a 
            transaction financed jointly by Sistema and a financial partner. 
     Subsequently, in order to combine the businesses, newly acquired Sintez 
     purchased a 75.1% stake in Biocom from Sinocom for RUB 3.6 billion. The 
    purchase of Biocom shares was funded with Sintez's own capital and funds 
 borrowed by Sintez. The companies have complementary portfolios in terms of 
   product types, have collaborated in the area of sales for many years, and 
are managed by a single executive team. The consolidation of the assets into 
    Sintez will capture existing synergies and support the further growth of 
             shareholder value. 
 
       Sinocom intends to make a public offer (mandatory tender) to minority 
   shareholders of Sintez to acquire their ordinary registered shares in the 
             company. 
 
   Sistema and its financial partner have concluded an agreement under which 
  Sistema will acquire its financial partner's stake in Sinocom within three 
             years of the transaction closing. 
 
     Sintez and Biocom - together with Alium, a pharmaceutical company being 
 created by Sistema through the merger of OBL Pharm and Binnopharm - will be 
   a major market player, possessing the potential to become a top-3 Russian 
      pharmaceutical company in the commercial segment. The combined product 
   portfolio of Sintez, Biocom and Alium will include more than 500 products 
 and its manufacturing capacity will consist of six production facilities in 
             Moscow, the Moscow region, Kurgan and Stavropol. 
 
      *** 
 
 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 PJSFC 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] 
 
                              *** 
 
   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] 
 
ISIN:          US48122U2042 
Category Code: MSCH 
TIDM:          SSA 
LEI Code:      213800JSZ2UUK4QQK694 
Sequence No.:  16116 
EQS News ID:   854175 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=8dbdb321a88e3508530119f5e3de64d2&application_id=854175&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

August 08, 2019 02:50 ET (06:50 GMT)