Moscow, Russia - April 02, 2013 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that its subsidiary CJSC Binnopharm ("Binnopharm") and Alium Group of Companies ("Alium"), a producer of infusion solutions and blood substitutes, have completed a deal that combines their assets. The deal was structured as an additional share issuance, with Sistema participating cash and Zenitko Finance Management LLC with Alium's assets. The combined entity will operate under the Binnopharm name.
After combining Binnopharm's and Alium's assets, Binnopharm represents a group consisting of two large production complexes that meet high European standards in pharmaceutical production and several distribution companies.
The additional share issuance totalled approximately RUB 1.749 billion. As a result of the deal, Sistema has decreased its shareholding in Binnopharm from 100% to 74%. Zenitko Finance Management LLC holds a 26% stake in Binnopharm.
Mikhail Shamolin, the President and Chief Executive Officer of Sistema, commented: "The combination of Binnopharm's and Alium's assets into Binnopharm will enable the integrated company to expand its business by entering new segments which cover the medicine in most demand. As well as enhancing the production capacity, the deal will help to strengthen the company's management team and its distribution network, and it will reduce commercial and G&A expenses. Going forward, as part of the internal reorganisation of Binnopharm, we plan to simplify its ownership structure, optimize its cost structure and increase transparency at the company."