Enhancing position in real estate

Sistema sold 51% of Leader Invest to Etalon Group, one of Russia's largest development and construction companies, for RUB 15.2 bn, while retaining a 49% stake in Leader Invest. The Corporation also acquired 25% of Etalon Group from its founder Vyacheslav Zarenko and his family for $226.6 mn. The merger of the assets along with managerial expertise of the two developers created a top-3 player in the Moscow and St. Petersburg real estate development markets with the joint project portfolio of 4 mn sq m. Etalon Group gained full control over the ZIL-Yug project as a result of an increase to 100% in the share of Leader-Invest JSC in Razvitie LLC, which has the right to implement the largest integrated development project in Moscow.

Expansion of pharma business

Sistema, together with VTB Group, acquired a 46.5% equity stake in Sintez Kurganskoe Medical Products Company (Sintez) and a 75.1% equity stake in Biocom from investment firm Marathon Group for a consideration of RUB 11.8 bn. Sintez is one of Russia’s 10 largest pharmaceutical companies by product output and the leading manufacturer of antibiotics among domestic manufacturers in the market. Biocom specialises in the production of non-patented antibiotics and medicines.

Increasing ownership in Ozon

In March 2019, Sistema acquired an 18.7% equity stake in Russia's leading multi-category online retailer, Ozon Holdings Limited, from MTS for RUB 7.9 bn. As a result, Sistema's direct shareholding in Ozon reached 19.3%. In April, Sistema further increased its stake in Ozon to 21.9% following the acquisition of shares from a number of Ozon minority shareholders, while Sistema’s venture capital fund Sistema_VC also holds 16.3% of Ozon.