MTS CONCLUDES INVESTMENT IN MTS BANK
Moscow, Russia – April 02, 2013 – Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, announces that MTS BV, a wholly owned subsidiary of Mobile TeleSystems OJSC (“MTS”) concluded a transaction to acquire a minority stake in MTS Bank OJSC (“MTS Bank”).
MTS acquires a 25.095% stake in MTS Bank for approximately RUB 5.1 billion through an additional share issue, in line with the terms announced on October 25, 2012. The transaction is fully in line with Sistema’s strategy of unlocking synergies between financial and mobile services and MTS's 3i Strategy, which calls for the expansion into lines of business that complement its extensive telecommunications and retail networks. The proceeds from the transaction will be used to finance expansion of the joint MTS Dengi project.
All regulatory approvals necessary for completion of the transaction, including antimonopoly and Russian Central Bank approvals, have been received. Completion of the transaction is expected next week with subsequent registration of the share issuance report by the Russian Central Bank. Following the transaction Sistema’s direct stake in MTS Bank will be 65.25%.
In connection with the deal, MTS and MTS Bank signed a share purchase agreement and MTS and MTS Bank also concluded a profit-sharing agreement whereby MTS and MTS Bank would realize 70% and 30% of the proceeds from the MTS Dengi project respectively. In addition, MTS and Sistema signed a shareholders agreement and MTS, Sistema and MTS bank signed a warranty and indemnity deed.
For further information, please visit www.sistema.com or contact:
Tel.: +7 (495) 692 1100
Tel.:+7 (495) 730 1705
Sistema is the largest publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 8.8 billion for the third quarter of 2012, and total assets of US$ 46.3 billion as at September 30, 2012. Sistema’s global depository receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the symbol “AFKS” on the MICEX-RTS Stock Exchange, and under the symbol “SIST” on the Moscow Stock Exchange (MSE). Sistema was ranked number 315 in the 2011 edition of the Fortune Global 500 list. Website: www.sistema.com
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
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