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.

Setup of a consolidated company in microelectronics

RTI Microelectronics, an RTI Group company, signed a legally binding agreement with State Corporation Rostec and Roselectronica JSC to create a joint venture, Element LLC, in the segment of microelectronics components. The first strategic project of the Element Group of Companies, created to consolidate key Russian microelectronic enterprises, was the opening of the Vostok Center for Collective Electronics Design on the basis of the Far Eastern Federal University.

Increasing ownership in Ozon

Sistema acquired 18.7% in Russia's leading multi-category online retailer, Ozon Holdings, from MTS for RUB 7.9 bn. As a result, Sistema's direct shareholding in Ozon reached 19.3%, while Sistema’s venture capital fund Sistema VC owns 16.3% of Ozon.