Moscow, Russia – 11 December 2017 – Sistema PJSFC (“Sistema” or “the Corporation”) (LSE: SSA; MOEX: AFKS), a publicly traded diversified Russian holding company, together with the Russia-China Investment Fund (“RCIF”) announce the launch of offering (the “Offering”) of up to 8% of PJSC Detsky mir (“Detsky mir” or the “Company”) ordinary shares (the “Shares”), corresponding up to 6.3% Shares expected to be sold by Sistema and up to 1.7% Shares by RCIF.   

The Shares will be offered (i) to institutional investors outside the United States in compliance with Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or (ii) in the United States only to qualified institutional buyers1, as defined in Rule 144A under the Securities Act, in reliance on Rule 144A or another exemption from the registration requirements of the Securities Act. The price per Share will be determined by way of an accelerated bookbuilding process, which is to start immediately. A further announcement will be made by the Corporation following completion of the bookbuilding and pricing of the Offering.

Following the Offering, Sistema is expected to remain the majority shareholder of Detsky mir and anticipates that it will continue to consolidate Detsky mir in Sistema Group IFRS financial statements, even in the event that Sistema’s shareholding decreases to below 50% of the Company’s share capital as a result of the Offering. The Offering is expected to increase Detsky mir’s free float and the liquidity of its shares, and is not expected to cause any material changes in the Company’s governance, including the composition of the Company’s Board of Directors.

Credit Suisse Securities (Europe) Limited and Morgan Stanley & Co. International plc are acting as joint bookrunners in connection with the Offering.

Any ordinary shares in Detsky mir held by Sistema and RCIF which are not sold in the Offering will be subject to a 90-day lock-up undertaking, subject to certain customary exceptions and/or waiver by the joint bookrunners.

1 According to the definition of the Rule 144A of the Securities Act

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