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SSAA - AFK Sistema PAO News Story

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Last Trade - 08/09/20

Market Cap £2.06bn
Enterprise Value £9.00bn
Revenue £6.08bn
Position in Universe 266th / 1806

EXCLUSIVE-Russia's RDIF in talks over control of Sistema's retail, power assets - sources

Fri 12th January, 2018 2:25pm
By Tatiana Voronova and Vladimir Soldatkin 
    MOSCOW, Jan 12 (Reuters) - Russian conglomerate Sistema, 
which has to make a big payment to energy giant Rosneft 
 ROSN.MM  to settle a business dispute, is in talks with one of 
the country's sovereign wealth funds about transferring two of 
its companies, sources said on Friday. 
    The negotiations concern the possibility of the state-owned 
Russian Direct Investment Fund (RDIF) taking over control of two 
  retail and power businesses from Sistema, a banking source and 
a source close to the conglomerate told Reuters. 
    Asked by Reuters for comment, RDIF said it had no plans to 
take over the assets, and Sistema said it was not planning to 
transfer the assets to the fund. 
    The dispute centred on mid-sized oil company Bashneft 
 BANE.MM , pitting Rosneft's chief executive Igor Sechin, a 
close ally of President Vladimir Putin, against Sistema owner 
Vladimir Yevtushenkov, a billionaire who some Russian media 
reports suggest is close to Prime Minister Dmitry Medvedev. 
    Under the settlement announced last month, Sistema has to 
pay Rosneft 100 billion roubles ($1.8 billion) by March 30 and 
RDIF has agreed to lend Sistema 40 billion roubles. Russia's 
largest lender Sberbank  SBER.MM  will also help Sistema to 
raise funds before the deadline.  urn:newsml:reuters.com:*:nL8N1OM3ZF 
    Sistema put up two of its assets, toy retailer Detsky Mir 
 DSKY.MM  and the Bashkirian Power Grid Company, as collateral 
against the RDIF loan.  urn:newsml:reuters.com:*:nL8N1OR0YY The talks centre on the 
possible transfer of these firms to the fund.      
    "The parties have been in discussion over the terms and the 
deal structure," a banking source said. 
    Another source, close to Sistema, confirmed that such talks 
have been under way and that the terms of the deal have not yet 
been agreed. It was not clear whether they would include any 
cash payments to Sistema or it would be non-cash transaction.  
    RDIF said in the emailed comments that the fund did not plan 
to acquire or in any way "gain control" over the assets. "RDIF 
acts as the arranger of the 40 billion-rouble-financing secured 
by these assets, as it was set in the amicable agreement," the 
fund said.  
    Sistema's spokesman said that the company was not 
considering transferring control over Detsky Mir and Bashkirian 
Power Grid Company to RDIF.  
    The RDIF's possible acquisition of the assets would mark a  
boost for the fund, which is headed by ex-banker Kirill 
Dmitriev. RDIF, which manages capital of $10 billion, was 
launched in 2011 with the aim of attracting foreign investments 
to Russia. 
    ($1 = 56.5008 roubles) 
 
 (Reporting by Tatiana Voronova and Vladimir Soldatkin; editing 
by Katya Golubkova and David Stamp) 
 ((vladimir.soldatkin@reuters.com; +7 495 775 12 42; Reuters 
Messaging: vladimir.soldatkin.thomsonreuters.com@reuters.net)) 
 
Keywords: RUSSIA RDIF/SISTEMA ASSETS
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