Moscow, Russia – 12 Febuary 2019 – Sistema PJSFC (“Sistema” or the “Company”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, today announces that Sistema and its wholly-owned subsidiary Sistema Telecom Assets LLC, divested a 39.5% stake in PJSC MTS Bank (“MTS Bank”), one of Russia’s 50 largest banks, to Mobile TeleSystems B.V., a wholly owned subsidiary of PJSC MTS (“MTS”) (NYSE: MBT, MOEX: MTSS), the leading telecommunications operator and digital service provider in Russia, for RUB 11.4 bn.

As a result of the transaction, Sistema’s direct ownership in MTS Bank decreased to 5.0% and MTS’s stake increased from 55.2% to 94.7%. In July 2018, Sistema sold a 28.6% stake in MTS Bank to MTS for RUB 8.3 bn.

Mr. Vsevolod Rozanov, Sistema Managing Partner and Chairman of the Board of Directors of MTS Bank, said,

“Consolidation of MTS Bank allows for deeper integration of the bank into MTS’s operations and speedier development of a digital banking services ecosystem. Since 2011, when the partnership between MTS and MTS Bank was launched, the two organisations have worked together to develop a wide range of joint offerings – from digital payments to credit cards to point-of-sale loans. Currently, joint products are available through more than 4,000 MTS retail stores and on millions of mobile devices.

“Gradual transfer of Sistema’s stake to MTS reduces integration risks. It also enables MTS to continue its  evolution as a digital service provider also offering fintech products. At the same time, Sistema now monetises its investment after successfully transforming the bank into a profitable company and a leader in digital banking in Russia.” 

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