Sistema sells JSC NVision Group
Moscow, Russia – July 17, 2015 – Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA), a publicly-traded diversified holding company in Russia and the CIS, today announces that its subsidiaries LLC Sistema Telecoms Assets and JSC RTI have signed legally binding agreements to sell their respective stakes in JSC NVision Group (“NVision”) to PJSC MTS (“MTS”). MTS will acquire 100% of NVision, including its debt obligations, for up to RUB15 billion.
At the initial stage of the transaction, MTS will acquire control over a number of NVision’s subsidiaries, including 100% of JSC SITRONICS Telecom Solutions and NVision Czech Republic a.s. The initial stage of the transaction was approved by the Federal Antimonopoly Service (FAS) of Russia and the antimonopoly authorities of Uzbekistan and Pakistan, where NVision’s subsidiaries operate. Approvals of antimonopoly authorities in other counties where NVision’s subsidiaries operate are required in order to complete this transaction.
The transaction is expected to be completed by the end of 2015 after a number of conditions have been fulfilled.
NVision is a supplier of billing solutions for MTS, as well as a developer and supplier of a variety of system integration services in Russia. Synergies between Sistema’s assets will increase the value of both its telecommunications and high-tech businesses by optimising costs and reducing MTS’ operating risks, as well as by ensuring more effective coordination during the development and launch process of new products and services to the market.
For further information, please visit www.sistema.com or contact:
Tel: +7 (495) 692 11 00
Tel.: +7 (495) 228 15 32
Sistema is a 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, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of RUB 167.7 billion for the first quarter of 2015, and total assets of RUB 1.2trillion as at March 31, 2015. 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 Moscow Exchange. 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.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.