SSA.L Regulatory News (SSA)

19 Mar 2015 11:45

SETTLEMENT AGREEMENT

Moscow, Russia – March 19, 2015 – Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA) today announces that Sistema and Ural-Invest LLC (“Ural-Invest”) have signed an amicable settlement agreement at the stage of the execution of to the decision of the Arbitrazh (Commercial) Court of the City of Moscow dated February 18, 2015. The agreement has been filed for the court’s approval, which according to the legislation, is expected to be considered by the court within one month. In accordance with the terms of the amicable settlement agreement, all the property owned by Ural-Invest, i.e. cash assets of approximately RUB 46.5 billion, will be transferred to Sistema.

Given the social importance of the projects of the URAL charitable fund (“Fund”), which is affiliated with Ural-Invest, and in accordance with the terms of the settlement agreement Sistema will invest RUB 4.6 billion of the funds receivable from Ural-Invest to the Fund’s socially important projects.

***

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

Sistema is the 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, energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 8.9 billion for the third quarter of 2014, and total assets of US$ 40.0 billion as at September 30, 2014. 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. Sistema was ranked number 308 in the 2013 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 2015