RCIF and Sistema Successfully Price Offering of 175m Detsky Mir Shares

Press release, 22.11.2019

Moscow, November 22, 2019 – The Russia-China Investment Fund (RCIF, established by RDIF and China Investment Corporation) and Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA; MOEX: AFKS), a publicly traded diversified Russian holding company, (together, the “Selling Shareholders”) have successfully priced the offering of Detsky Mir shares (the “Offering”).

DETAILS OF THE OFFERING

  • The Offering size amounts to 175 million existing shares in Detsky Mir, representing 23.7% of Detsky Mir’s share capital.
  • The shares were sold at a price of RUB 91 per share.
  • After giving effect to the Offering, the free float of the Company is 57.6%
  • The Offering raised gross proceeds of approximately RUB 15,925m for the Selling Shareholders.
  • RCIF has a remaining ownership interest of 9.0% and Sistema has a remaining ownership interest of 33.4 %, respectively, in Detsky Mir.
  • Goldman Sachs International, Sberbank CIB, UBS Investment Bank and VTB Capital plc acted as Joint Global Coordinators and Joint Bookrunners (the “JGCs”).

Shares in Detsky Mir held by RCIF and Sistema which are not sold in the Offering will be subject to a 180-day lock-up, subject to certain customary exceptions.

Kirill Dmitriev, CEO of RDIF and Co-CEO of RCIF, said:
“The Offering was a great success for RDIF, RCIF and our co-investors and it has played a major role in enhancing the liquidity of the company. Investment funds and institutional investors from the United States, Europe and other locations have expressed strong interest in purchasing shares of Detsky Mir. RCIF remains a sizeable minority shareholder of Detsky Mir as we believe in the company’s success and further growth moving forward”.

Hu Bing, Co-CEO of RCIF, said:
“The offering of Detsky Mir confirmed growing interest of international investment community for Russian high-quality companies. We are proud to be a part of such a success story in Russia. Detsky Mir is well-positioned to operate successfully and will continue to expand and we hope that RCIF’s shareholding and involvement will further support the company’s growth and further enhance its performance.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF’s portfolio of companies employs more than 800,000 people and generates revenues which equate to over 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru

Russia-China Investment Fund (RCIF) is a private equity fund that aims to generate competitive returns by investing in projects that advance bilateral economic cooperation between Russia and China. Further information can be found at www.rcif.com

Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, high tech, banking, retail, forest products, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2018 reached RUB 773.9bn; its total assets equaled RUB 1.5tn as of 31 December 2018. Sistema's global depositary receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the Moscow Exchange. Further information can be found at www.sistema.com

Detsky Mir Group is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir retail chain, ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The company operates a network of 710 Detsky Mir stores located in 266 cities in Russia, Kazakhstan and Belarus, as well as 48 ELC and 14 ABC stores as of 30 September 2019. The Zoozavr retail chain comprises eight stores. Total selling space was approximately 794,000 square meters. Further information can be found at www.detmir.ru, www.elc-russia.ru, ir.detmir.ru

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133

Jessy Zheng
Russia-China Investment Fund
Beijing, China
Tel.: +86 10 5762 9000
Fax: +86 10 57629111
jie.zheng@rcif.com

Yury S. Trofimov
Russia-China Investment Fund
Moscow, Russia
Tel.: +7 (495) 230-05-55 ext. 4243
Mob.: +7 (985) 765-13-12
yury.trofimov@rcif.com

Sistema
Nikolai Minashin
Investor Relations
Tel.: +7 (495) 730 66 00
n.minashin@sistema.ru

Public Relations
Sergey Kopytov
Tel.: +7 (495) 228 15 32
kopytov@sistema.ru

Detsky Mir
Nadezhda Kiseleva
Head of Public Relations
Office: +7-495-781-08-08, ext. 2041
Cell: +7-985-992-78-57
nkiseleva@detmir.ru

Sergey Levitskiy
Head of Investor Relations
Office: +7-495-781-08-08 ext. 2315
Cell: +7-903-971-43-65
slevitskiy@detmir.ru