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 assets

Sistema acquired a 13% equity interest in Pharmaceutical Enterprise Obolenskoe JSC (OBL Pharm). The stake was acquired jointly with VTB Bank and management of OBL Pharm. Later this year, the Russian Direct Investment Fund, the Russia-China Investment Fund and leading Middle Eastern funds joined the project. Total investment of the consortium amounted to RUB 15.5 bn. The strategic goal of the deal is to create Russia's leading pharma holding and a top-5 player in the commercial segment of the Russian pharmaceutical market by merging OBL Pharm and Binnopharm under the Alium brand. The companies' aggregate diversified product portfolio comprised about 200 drugs, and Alium’s total production facilities included four high-tech plants in Moscow and the Moscow region.

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.