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Position in Universe 267th / 1807

JSFC Sistema - Sistema sells 23.1% of Detsky Mir

Mon 4th January, 2016 7:00am
RNS Number : 6661K
JSFC Sistema
04 January 2016

Sistema sells 23.1% of Detsky Mir

Moscow, Russia - January 4, 2016 - Sistema JSFC ("Sistema" or "the Company"), a publicly-traded diversified holding company in Russia and the CIS, announces that its subsidiary CJSC DM Finance has sold 23.1% of JSC Detsky Mir ("Detsky Mir" or "Detsky Mir Group" or "the Group") to the Russia-China Investment Fund ("RCIF") for a total consideration of RUB 9.75 billion.

Detsky Mir Group owns the Detsky Mir and ELC (Early Learning Centre) chains, and is Russia's largest retailer of children's goods. As of the end of 2015, the Detsky Mir Group's retail network consisted of 425 stores with a total retail space of 504,000 m2. The Group's stores operate in 148 cities in Russia and Kazakhstan. The Group's revenue for the nine months of 2015 was RUB 40.0 billion, a year-on-year increase of 34.1%.

Sistema President and CEO Mikhail Shamolin said: "Detsky Mir has achieved double-digit growth rates over the past several years, constantly increasing its market share in Russia and Kazakhstan. Today's deal is recognition of our successful efforts to turn the Detsky Mir Group into a market leader, and it also marks an important step in the Group's further development. This transaction is also an important event for Sistema as we execute our strategy of monetising assets. We are delighted to welcome RCIF as a strategic investor in Detsky Mir Group, as we share the same vision for the development of this asset. We are confident that RCIF's investment will enable Detsky Mir Group to strengthen its competitive advantages, and will contribute to the further growth of the value of the business."

Kirill Dmitriev, CEO of RDIF and co-CEO of RCIF, said: "Detsky Mir is building an amazing success story in children goods retail in Russia and the CIS. Partnership with Sistema and Detsky Mir offers a great experience for RCIF, and we are glad to take our relationship with them to the next level and to support Detsky Mir's development and expansion to international markets, including China and other counties. The deal is in line with our investment strategy focused on growth of the middle class and its demand for goods, especially in the regions."

RCIF will nominate two members to JSCDetsky Mir 10-member Board of Directors.

***

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

Investor Relations

Yulia Katukova

Tel: +7 (495) 692 22 88

katukova@sistema.ru

Public Relations

Sergey Kopytov

Tel.: +7 (495) 228 15 32

kopytov@sistema.ru

Sistema is a publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of RUB 515.9 billion for the nine months of 2015, and total assets of RUB 1.2trillion as at September 30, 2015. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the Moscow Exchange. Website: www.sistema.com


This information is provided by RNS
The company news service from the London Stock Exchange
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