27 Dec 2013 15:00
SISTEMA ACQUIRES CONTROLLING STAKE IN CJSC BUSINESS NEDVIZHIMOST
Moscow, Russia – December 27, 2013 – Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that it has acquired 51% of the ordinary shares of CJSC Business Nedvizhimost (“Business Nedvizhimost” or “the Company”) from CJSC MGTS-Nedvizhimost, for RUB 3.2 billion. The value of the stake is based upon an independent appraisal prepared by American Appraisal.
Business Nedvizhimost was established in September 2013, following a separation from CJSC MGTS-Nedvizhimost during its reorganisation. The Company’s main areas of operation are property management and leasing. Business Nedvizhimost owns 76 real estate sites, which cover a total area of approximately 178,000 square meters, and were used by MGTS as automatic telephone stations (ATS) prior to the implementation of GPON (Gigabit-capable Passive Optical Network) technology. Located across Moscow, almost half of the sites, individually, cover a total area of less than 700 square meters, and all the buildings have an average depreciation of over 70%.
Business Nedvizhimost’s assets will be mainly developed by Sistema’s property development arm CJSC Leader Invest. For 2014, initial plans of Business Nedvizhimost include redevelopment of 15 sites, as well as an assessment of new rental opportunities.
Mikhail Shamolin, President and CEO commented:
“Sistema and its group of companies may have significant real estate potential. In 2013, we have established a special investment division within Sistema which will seek to develop and monetise some of these opportunities. We believe that Business Nedvizhimost’s sites, despite their varied nature, offer attractive development opportunities. Using largely external financing, we plan to commence reconstruction of these former ATS into “business class” residential property in 2014.”
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For further information, please visit www.sistema.com or contact:
| Investor Relations Evgeniy Chuikov Tel.: +7 (495) 692 1100 ir@sistema.ru | Public Relations Eleonora Veitsman Tel.: +7 (495) 730 1705 pr@sistema.ru |
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$ 9.3 billion for the third quarter of 2013, and total assets of US$ 44.4 billion as at September 30, 2013. 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. Sistema was ranked number 315 in the 2012 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.
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.
Copyright Business Wire 2013