Announcement on the acquisition of Nearmedic Group

15 September 2021, Moscow — Sistema PJSFC (“Sistema”, the “Corporation” or, together with its subsidiaries and affiliates, the “Group”) (LSE: SSA, MOEX: AFKS) announces that JSC New Investment Holding[i] ("the Buyer") has acquired Nearmedic International Limited, the 100% shareholder of LLC Nearmedic Plus, LLC Nearmedic Pharma, and several other pharmaceutical, biotech, and healthcare businesses in Russia and Italy (“Nearmedic Group” or “Nearmedic”) for 1 rouble (“the Transaction”). Nearmedic Group's net debt as of the closing of the Transaction was RUB 5.9bn.

Sistema and the Sberbank group of companies (“Sberbank”) have in equal parts provided the Buyer with RUB 1.2bn in equity financing that will go towards the partial repayment of Nearmedic's outstanding debt to Sberbank. Sistema and Sberbank have also entered into option agreements, exercisable within 3.5 years from the date of closing, enabling Sistema to buy and Sberbank to sell to Sistema its equity interest in JSC New Investment Holding, with up to RUB 2.8bn in outstanding receivables due from Nearmedic to be transferred from Sberbank to Sistema immediately upon such sale.

"Nearmedic Group has growth potential that can be unlocked through restructuring and improvements in efficiency, areas precisely where Sistema has robust, proven expertise. We also have a strong track record in pharmaceuticals, healthcare and biotech, all of which are key business lines for Nearmedic. We will shortly begin implementing a turnaround plan for Nearmedic Group focused on boosting the value of the company’s assets and expanding production capacities," said Sistema President Vladimir Chirakhov. 

Nearmedic Group consists of pharmaceutical, biotech, and medical assets. The company's core businesses are the design and production of original medications; the development, manufacturing and sale of diagnostic test kits; the supply of suites of equipment for medical laboratories; and the provision of medical and lab services.

Nearmedic Group possesses production facilities in the cities of Obninsk and Mosalsk, a factory producing medical products in Italy, and a chain of multi-specialty medical clinics across Moscow, Obninsk, and Ryazan.

***

For further information, please visit www.sistema.com or contact:

Sistema PJSFC is a publicly traded Russian investment company with a diversified portfolio of assets serving some 150 million customers in the sectors of telecommunications, high technology, financial services, retail, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2020 was RUB 691.6 billion; total assets equalled RUB 1.4 trillion as of 31 December 2020. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com.

[i] JSC New Investment Holding is jointly controlled by the Group and Sberbank, which own 50%+1 shares and 50%-1 shares in its equity, respectively.