Moscow, RussiaĖ 05 July 2018 Ė Sistema PJSFC (ďSistemaĒ or the ďCompanyĒ, together with its subsidiaries, ďthe GroupĒ) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, today announces the divestiture of a 28.63% stake in PJSC MTS Bank, one of the 50 largest banks in Russia, to Mobile TeleSystems B.V., a wholly owned subsidiary of PJSC MTS (NYSE: MBT, MOEX: MTSS), the leading telecommunications operator and digital service provider in Russia, for RUB 8.27 bn.
As a result of the transaction, Sistemaís direct ownership in MTS Bank decreased to 43.24% and MTSís stake increased from 26.61% to 55.24%.
The transaction builds on the success of the partnership launched in 2011 between MTS and MTS Bank to promote digital payment solutions and the issuance of credit cards and PoS loans. Since then, MTS Bank has increased its customer base, optimized its IT systems and business processes, and has been sufficiently capitalized, returning to sustained profitability in 2017. Consolidation of a controlling stake in MTS Bank will further advance the build-out of MTSís platform of digital products and customized offerings in the fast-growing fintech business.
Mr. Vsevolod Rozanov, Sistemaís Managing Partner and Chairman of the Board of Directors of MTS Bank, said, ďMTSís acquisition of a controlling stake in MTS Bank will accelerate development of the Bank, while allowing Sistema to monetize its investments in the banking sector. The transaction enhances MTSís role as a digital service provider while its core telecom business will also benefit from higher penetration of data services and increased customer loyalty driven by adoption of fintech products. Likewise, leveraging MTSís retail presence and online capabilities, the Bank will continue its digital transformation to offer a truly omni-channel experience to its clients.Ē
For further information, please visit www.sistema.com or contact:
Phone: +7 (495) 730 66 00
Phone: +7 (495) 228 15 32