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Sistema PJSFC - Regarding receipt of legal claim

Wed 13th December, 2017 7:00am
RNS Number : 1549Z
Sistema PJSFC
13 December 2017

Regarding receipt of legal claim and injunctions in relation to a claim by Rosneft and Bashneft

Moscow, Russia - 13December 2017 - Sistema PJSFC ("Sistema" or "the Corporation") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that it has received a legal claim (the "Claim") filed by Rosneft and PJSOC Bashneft (the "Claimants") seeking damages from the Corporation and its 100% subsidiary JSC Sistema-Invest in the amount of RUB 131,639,012,421.18.

In addition to the arguments previously made that losses at Bashneft were the result of such common business practices including preparation for an IPO, repurchases and cancellation of Bashneft's own shares, the new Claim centres on the contention that the Bashneft's losses were the result of the payment of dividends.

The Claimants addressed the Arbitration Court of the Republic of Bashkortostan with an application for injunctive measures, which was granted immediately.

The court ordered an arrest of the following property of the Corporation and JSC Sistema-Invest:

52.09% of shares in the authorised share capital of PJSC Detsky Mir

90.5% of shares in the authorised share capital of JSC Agroholding Steppe

71.87% of shares in the authorised share capital of PJSC MTS Bank

100% of the authorised share capital of LLC Sistema Telecom Assets

98.78% of shares in the authorised share capital of JSC Leader-Invest

16.18% of the authorised share capital of LLC Segezha Group of Companies

88.78% of the authorised share capital of LLC Kronshtadt Group

45.96% of the authorised share capital of LLC Sistema Hotel Management

27% of the authorised share capital of LLC United Bridge Construction Enterprise

Moreover, the court's determination restricts the rights of Sistema and Sistema-Invest to receive revenue (dividends) from the frozen securities and shareholdings.

Sistema categorically disputes the Claim and the injunctions and considers the demands and actions of Rosneft and PJSOC Bashneft to be unlawful, baseless and knowingly dishonest.

It is Sistema's firm belief that the Claimants have filed this Claim with the aim of groundless enrichment and with the intention of destroying Sistema's shareholder value, bringing the Corporation to bankruptcy, a Corporation that is one of Russia's largest non-state business groups and largest employers, with approximately 130,000 employees.

The case has been accepted by the Arbitration Court of the Republic of Bashkortostan. Preliminary hearings on the case have been scheduled for 12 January 2018.

Sistema will present the court with a substantiated defense of all of the Claimants' arguments.

The Corporation believes that all of the issues raised in the Claim deserve maximum transparency, and will provide regular updates on the dispute to the media and investors.


For further information, please visitwww.sistema.ruor contact:

Investor Relations

Yuri Krebs

Tel.: +7 (495) 730 66 00

Press service

Sergei Kopytov

Tel.: +7 (495) 228 15 32


This announcement contains inside information. Full name and position of person making the announcement - Yuri Krebs, Director, Investor Relations

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