Moscow, Russia - October 22, 2014 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that it has completed the purchase of a 40% stake for a total consideration of approximately RUB 1 billion in a holding company that owns Concept Group, one of Russia's leading fashion clothing retailers by revenue growth.
In accordance with the terms of the signed documentation Sistema has an option to increase its shareholding in Concept Group to a controlling stake within three years.
Founded in 2004, Concept Group creates collections and sells women's clothing, accessories, lingerie as well as children's wear through its own stores, franchises, online and wholesale channels. It operates under the Concept Club, Bestia, Infinity Lingerie and Acoola brands. As of the end of 2013, Concept Group's retail chain comprised 287 stores in 103 cities across Russia with an average store area of 100-250 sq.m. In 2013, Concept Group's revenue exceeded RUB 5 billion, demonstrating increase of nearly 40% in comparison with its revenues in 2012.
Mikhail Shamolin, President and CEO of Sistema, commented:
"Concept Group is a fast-growing company with a proven business model and an experienced management team. The Russian clothing market has been developing rapidly over many years and has high potential for organic and non-organic growth. We believe that Concept Group is an attractive investment, which offers an opportunity to broaden our presence in the promising retail segment."
***
For further information, please visit www.sistema.com or contact:
|
Public Relations
Olga Gudina
Tel.: + 7 (495) 730 7188
Gudina@sistema.ru |
Investor Relations
Evgeniy Chuikov
Tel.: +7 (495) 692 1100
ir@sistema.ru |
| 
.jpg){kind=small}
