Sistema divests 51% stake in Leader Invest

Moscow, Russia - 19 February 2019 - Sistema PJSFC ("Sistema") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that Sistema Group has signed a binding agreement to sell 51% of the shares of Leader Invest JSC ("Leader Invest"), a leading Moscow-focused real estate developer, to ETALON GROUP PLC (together with its subsidiaries and affiliates "Etalon Group"), one of the largest development and construction companies in Russia,  for RUB 15.2 billion. As a result of the transaction, Sistema Group's stake in Leader Invest will amount to to 49%.

 

The businesses of Leader Invest and Etalon Group complement well one another in terms of locations and classes of development projects. The transaction will create a new leader in the residential real estate market, with opportunities for the two developers to optimise construction, marketing and promotional costs, as well as administrative expenses. In sum, these synergies will ensure continued growth in the value of Sistema's stake in Leader Invest.

 

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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2017 reached RUB 704.6 billion; its total assets equalled RUB 1.1 trillion as of 31 December 2017. Sistema's global depositary receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website:

 

Leader Invest JSC is one of the largest developers in the Moscow residential real estate market in terms of portfolio size and the number of completed projects. The company's portfolio includes club-format residential complexes in the Comfort, Business and Premium classes, as well as large-scale integrated mixed-use development projects. Leader Invest's portfolio comprises 39 projects with total net sellable area of around 1.3 mln sq. m., including 31 projects at construction and design stages and 8 completed projects. Projects are located primarily in high-prestige districts of "old" Moscow, and the majority within and near to the Third Transport Ring.

 

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This announcement contains inside information. Full name and position of the person making the announcement - Nikolai Minashin, Director, Investor Relations