SISTEMA PJSFC Sistema divests a stake in MTS Bank

Transparency directive : regulatory news

12/02/2019 17:00

Sistema PJSFC (SSA)
Sistema divests a stake in MTS Bank

12-Feb-2019 / 19:00 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 divests a stake in MTS Bank

 

Moscow, Russia - 12 Febuary 2019 - Sistema PJSFC ("Sistema" or the "Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, today announces that Sistema and its wholly-owned subsidiary Sistema Telecom Assets LLC, divested a 39.5% stake in PJSC MTS Bank ("MTS Bank"), one of Russia's 50 largest banks, to Mobile TeleSystems B.V., a wholly owned subsidiary of PJSC MTS ("MTS") (NYSE: MBT, MOEX: MTSS), the leading telecommunications operator and digital service provider in Russia, for RUB 11.4 bn.

 

As a result of the transaction, Sistema's direct ownership in MTS Bank decreased to 5.0% and MTS's stake increased from 55.2% to 94.7%. In July 2018, Sistema sold a 28.6% stake in MTS Bank to MTS for RUB 8.3 bn.

 

Mr. Vsevolod Rozanov, Sistema Managing Partner and Chairman of the Board of Directors of MTS Bank, said,

 

"Consolidation of MTS Bank allows for deeper integration of the bank into MTS's operations and speedier development of a digital banking services ecosystem. Since 2011, when the partnership between MTS and MTS Bank was launched, the two organisations have worked together to develop a wide range of joint offerings - from digital payments to credit cards to point-of-sale loans. Currently, joint products are available through more than 4,000 MTS retail stores and on millions of mobile devices.

 

"Gradual transfer of Sistema's stake to MTS reduces integration risks. It also enables MTS to continue its  evolution as a digital service provider also offering fintech products. At the same time, Sistema now monetises its investment after successfully transforming the bank into a profitable company and a leader in digital banking in Russia." 

 

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For further information, please visit www.sistema.com or contact:

 

Investor Relations

Nikolai Minashin

Tel: +7 (495) 730 66 00

n.minashin@sistema.ru

Public Relations

Sergey Kopytov

Tel.: +7 (495) 228 15 32

kopytov@sistema.ru

 

 

 

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

 

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Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, children's goods retail, paper and packaging, healthcare services, agriculture, high technology, banking, real estate, pharmaceuticals and hospitality. The company was founded in 1993. Its revenue in 2017 was RUB 704.6 bn; its total assets equalled RUB 1.1 trn as of 31 December 2017. 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 Moscow Exchange. Website: www.sistema.com.



ISIN: US48122U2042
Category Code: MSCH
TIDM: SSA
LEI Code: 213800JSZ2UUK4QQK694
Sequence No.: 7465
EQS News ID: 775103

 
End of Announcement EQS News Service

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