Sistema agrees to acquire Elektrozavod Group

23 December 2020, Moscow – Sistema PJSFC (“Sistema” or the “Corporation”, together with its subsidiaries and associates, "Sistema Group") (LSE: SSA, MOEX: AFKS), a Russian public diversified holding company, announces that its affiliate LLC Megapolis Invest has entered into agreements to acquire a 64.37% share in JSC Elektrozavod and control over 100% in LLC Elektrokombinat (“Elektrozavod Group”) from certain private investors for RUB 24.7bn (with a net cash position) with the goal of creating Russia’s leading manufacturer of transformer equipment and implementing a real estate development project on land plots located in Moscow owned by Elektrozavod Group (the “Transaction”).

The Transaction is expected to be financed via investments to be provided by Sistema Group (in the total amount of up to RUB 11.0bn) and certain third-party partners. The completion of the Transaction is anticipated by the end of 2020 subject to satisfaction of certain conditions stipulated in the agreements.

Additional co-investors may be brought in at a later stage for both the transformer business and the real estate development project.

Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre and land plots totalling 19 hectares near the Elektrozavodskaya metro station in Moscow.

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


Investor Relations

       Public Relations

Nikolai Minashin

       Sergey Kopytov

Tel.: +7 (495) 730 66 00

       Tel.: +7 (495) 228 15 32

n.minashin@sistema.ru

       kopytov@sistema.ru

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Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2019 reached RUB 656.9bn; its total assets equalled RUB 1.3tn as of 31 December 2019. 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

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