Sistema PJSFC (SSA)
Sistema PJSFC: Sistema completes transaction to become shareholder of
pharmaceutical businesses Sintez and Biocom
08-Aug-2019 / 09:50 MSK
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according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
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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: +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.: 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)
