IPO of Detsky Mir
Sistema held a successful IPO of Detsky Mir’s shares on the Moscow Exchange, which has become the first big transaction in the Russian capital market in three years and involved a broad pool of Russian and foreign investors from Europe, the United States and Asia. The offering price was set at RUB 85 per share corresponding to the company’s market capitalisation of approximately RUB 62.8 bn. Sistema’s stake in Detsky Mir amounted to 52.1% . As a result of the transaction, Sistema raised almost RUB 12.9bn (before underwriting fees and other expenses).
New paper-making machine at Segezha Pulp & Paper Mill
Segezha Group launched the unique paper-making machine with a high level of automation and capacity of 110,000 tons. Investments in the project amounted to € 80 mn. The machine was built by an international team of engineers and technologists from Germany, Russia, China, Finland, Brazil, Croatia and the Czech Republic. Following its launch, Segezha Pulp & Paper Mill became the world's biggest producer of unbleached sack paper.
Regional development of Medsi
Medsi Group acquired Medem Clinic (including 28 departments on an area of 6,800 sq m) to enter the St Petersburg market, and Medlife, a leading private healthcare chain in Perm, consisting of 5 clinics and a wellness centre with a total area of over 6,400 sq m.
Sistema's landbank expansion
Steppe AgroHolding expanded its land holdings by 67,000 ha to 380,000 ha by acquiring new assets with a high growth potential in the Stavropol and Rostov regions.<br>
Hotels managment companу was established
Sistema divided the ownership and management the hotel assets and established Cosmos Hotel Group, tasked with managing and developing hotels owned by the Corporation, development of its own hospitality brands and providing a broad range of hotel services to external counterparties.
Chips for the national bank cards
The first bank cards of the MIR national payment system were issued, based on microchips manufactured by NIIME and Mikron and qualified as a first-category domestic product.
Concept Group extended its sales geography
Concept Group and Indian Saamag Group established a joint venture to develop the Acoola children's clothing retail chain in India. The first Acoola store opened in New Delhi. The retailer also opened its stored in the capitals of Armenia and Azerbaijan.
MTS buyback programme implementation
In 3Q 2017, MTS launched a share repurchase programme totalling up to RUB 20 bn to create additional returns for its shareholders, including Sistema.
Completion of merger between SSTL and RCom
Sistema completed the merger of the telecom business of its Indian subsidiary Sistema Shyam TeleServices (SSTL) with Reliance Communications (RCom). SSTL received a 10 % equity stake in RCom following a new share issue by the Indian operator. SSTL's telecom business, including its licenses and obligations with respect to the 800-850 MHz frequency range, was transferred to RCom.