19 Jun 2017 08:20
Sistema, Ruselectronics to establish a microelectronics JV
Moscow, 19 June 2017. - Sistema PJSFC (LSE: SSA, MOEX: AFKS), a Russian diversified public holding company, and JSC Ruselectronics, a subsidiary of the state-owned corporation Rostec, announce the signing of a memorandum of understanding on establishing a joint venture in the area of microelectronics (hereinafter, "the JV").
The parties will contribute their assets that design, manufacture and certify electronic components to the JV. The final list of assets to be transferred will be determined after the completion of due diligence.
Under the shareholder structure, it is planned that Sistema will receive a controlling stake in the JV. Sistema may also attract independent financial investors to the JV during the period it is being formed.
The transaction forming the JV is expected to close before the end of Q1 2018.
"Sistema has extensive competences in microelectronics. Its subsidiary, Mikron, has Russia's only production based on 180-90-65 nm technology and is conducting research into 45 nm technology. I am confident that the partnership, which will merge the country's leading microelectronic enterprises, will bring Russian microelectronics to a brand new level," said Sistema president Mikhail Shamolin.
"Merging assets will help to formulate a single R&D policy in radioelectronics. By doing so we will be able to build a technological chain based on unified principles and technologies, which will enhance efficiency and reduce excessive competition between Sistema and Rostec entities," said Sergey Boev, Deputy Chairman of Sistema's Board of Directors and Chairman of the Board of RTI.
"The merger of assets has been initiated in accordance with Rostec's strategy aimed at attracting investment partners to companies that ensure the country's technological sovereignty. It will allow pursuing a single research, technological and product strategy, centralising management of R&D programmes, expanding cooperation between enterprises, optimising utilisation rates and increasing operational efficiency," said Grigory Elkin, acting CEO of Ruselectronics.
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For further information, please visit www.sistema.ru or contact:
Investor Relations Yury Krebs Tel.: +7 (495) 730 66 00 y.krebs@sistema.ru | Press Service Sergey Kopytov Tel.: +7 (495) 228 15 27 kopytov@sistema.ru |
Sistema PJSFC is a publicly traded diversified Russian holding company serving approximately 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, hospitality and healthcare services. The company was founded in 1993. Its revenue in 2016 reached RUB 697.7bn; its total assets equalled RUB 1.1tn as of 31 December 2016. Sistema's global depository 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: www.sistema.ru