Sistema acquires stake in Melon Fashion Group

Moscow, Russia – 19 October 2022 – Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS), a publicly traded Russian investment company, announces that it has entered into binding agreements to acquire a 47.7% stake in Melon Fashion Group JSC (“Melon Fashion Group” or the “Company”), a leading Russian fashion manufacturer and retailer, from the Swedish Eastnine and East Capital Holding AB, as well as a group of individual investors, for RUB 15.8 billion (the “Transaction”).

Sistema will finance the Transaction with its own and borrowed funds. The completion of the Transaction is anticipated by the end of 2022 subject to further regulatory approvals and satisfaction of certain conditions stipulated by the parties to the Transaction.

About Melon Fashion Group

Melon Fashion Group, together with its subsidiaries and affiliates, is one of the largest and fastest-growing fashion retailers in Russia; it owns and operates the Zarina, befree, Love Republic and Sela brands. Founded in 2005, the Company is engaged in the full cycle of fashion production, from modelling to sales distribution and promotion. Melon Fashion Group operates in 181 cities in Russia and the CIS (Kazakhstan, Armenia and Belarus). As of the end of 2021, the Company consisted of 845 stores with total retail space of 227 thsd sq. m; its share of online sales was 32%. Melon Fashion Group’s revenue in 2021 reached RUB 37.5 billion (up 49% year-on-year), and its EBITDA increased by 38% year-on-year to RUB 8.6 billion. The Company’s net profit was RUB 3.5 billion. The company had no loans and borrowings as of the end of 2021; cash and cash equivalents amounted to RUB 5.2 billion.

Sistema President Tagir Sitdekov said: “Melon Fashion Group is growing fast and demonstrating operational excellence. The Transaction is entirely in line with our investment strategy, which is focused on consolidating high-quality assets as well as leveraging opportunities arising from the ongoing market transformation. With our extensive experience in building leaders in Russian retail, we will be delighted to take part in the next stage of Melon Fashion Group’s development and to play a role in further increasing the value of its business.”


For further information, please visit or contact:

Public Relations

Sergey Kopytov

Tel.: +7 (495) 730 17 05

Investor Relations

Sergey Levitskiy

Tel: +7 (495) 730 66 00

Sistema PJSFC is a publicly traded, diversified Russian holding company in sectors including telecommunications, high technology, financial services, retail, e-commerce, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2021 was RUB 802.4 billion; total assets as of 31 December 2021 amounted to RUB 1.8 trillion. Sistema’s global depositary receipts are listed under the ticker “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the ticker “AFKS” on Moscow Exchange. Website: 

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