Moscow, Russia– 02 July 2018 – Sistema PJSFC (“Sistema” or the “Company”, together with its subsidiaries, “the Group”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, today announces, announces that its subsidiary Sistema Finance S.A. has signed a sale and purchase agreement for shares in PJSC MTS (“MTS”) as part of the new buyback programme for MTS shares in the amount up to RUB 30.0 bn approved by the Board of Directors of MTS in June 2018 (the “Programme”). 

During the Programme, which was launched on 02 July 2018 and will be effective during two years, MTS’s subsidiary LLC Bastion (the “Purchaser”) plans to acquire shares and American depositary shares of MTS (collectively, the “Shares”) in the open market. Under the agreement, Sistema Finance may sell to the Purchaser ordinary shares of MTS in the amount calculated based on the number of Shares to be purchased by the Purchaser in the open market in proportion to Sistema Group’s effective equity stake in MTS (50.0048% as of 02 July 2018).    

Sistema Group’s effective stake in MTS will therefore not change materially as a result of the Programme and Sistema Group will retain effective control over MTS. The Purchaser will purchase ordinary shares from Sistema Finance based on the weighted average price of Shares at which the Purchaser purchased them in the open market for each calendar month*.

*Taking into account the discount of the market value of MTS ordinary shares to American depositary shares. 

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