Expansion of pharma business

Binnopharm and Alium Group, a producer of infusion solutions and blood substitutes, combined their assets. The deal was structured as an additional share issuance totalled approximately RUB 1.749 bn. As a result of the deal, Sistema has decreased its shareholding in Binnopharm from 100% to 74%. Binnopharm included two large production complexes that meet high European standards in pharmaceutical production and distribution branches.

Investment in business real estate

Sistema acquired from MGTS-Nedvizhimost 51% of Business Nedvizhimost, which owned 76 properties with total area of 178,000 sq m, and consolidated Sistema's rental assets after the Corporation raised its stake in the company to 100%. The total sum of the transaction amounted to RUB 6.3 bn.

New motivational programme

Sistema’s Board of Directors approved a new incentive plan for the management of the Corporation, based on cash generation and share price performance principles.

UPC acquisition

Sistema acquired 98% of United Petrochemical Company (UPC) from Bashneft for RUB 6.2 bn. Later, UPC and its subsidiary Alpek established a joint venture for the construction of petrochemical plants in Bashkortostan.

Restructuring of transportation assets

Sistema sells 70 % and 15 % of SG-trans to Financial Alliance and Unirail Holdings Limited for RUB 12.0 bn and RUB 2.5 bn, respectively. After restructuring, Sistema remained 100 % owner of SG-trading, an independent distributor of liquefied petroleum gas, that was spun off from SG-trans.

Sale of RussNeft

Sistema sold its 49% stake in RussNeft for $1.2 bn.

Bashkir assets reorganisation

Sistema's Board of Directors approved the reorganization of Sistema Invest to eliminate cross ownership of Bashneft. The Corporation alsо acquired 100% of LLS Bashneft Service Assets from Bashneft for RUB 4.1 bn.