Russia-China Investment Fund and Sistema successfully price offering of 117,777,459 Detsky Mir shares

Press release, 17.06.2020


Moscow, June 17, 2020 – The Russia-China Investment Fund (RCIF, established by RDIF and China Investment Corporation) via its investment vehicles Floette Holdings Limited and Exarzo Holdings Limited, and Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA; MOEX: AFKS) (collectively, the “Selling Shareholders”), have successfully priced the offering (the “Offering”) of Detsky Mir shares (the “Company”).


  • The Offering size amounts to 117,777,459 existing shares in Detsky Mir, representing 15.94% of Detsky Mir’s share capital.
  • The shares shall be sold at a price of RUB 93 per share.
  • Following the completion of the Offering, the free float of Detsky Mir shall be approximately 75.00% with the Selling shareholders retaining 25.00% plus 1 share combined.
  • The Offering will raise gross proceeds of approximately RUB 10,953m for the Selling Shareholders, inclusive of RUB 2,023m for RCIF.
  • Prior to the completion of the Offering, RCIF has 7.56% ownership interest and Sistema has 33.38% ownership interest, respectively, in the Detsky Mir. Following the completion of the Offering, RCIF shall have a remaining ownership interest of 4.62% and Sistema shall have a remaining ownership interest of 20.38%, respectively, in the Company.
  • Credit Suisse Securities (Europe) Limited, Goldman Sachs International, Sberbank CIB and VTB Capital plc are acting as Joint Global Coordinators and Joint Bookrunners (the “JGCs”), Alfa Bank is acting as Joint Bookrunner.

Shares in Detsky Mir held by RCIF and Sistema which were not sold in the Offering will be subject to a 90-day lock-up, subject to certain customary exceptions.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund and Co-CEO of RCIF, said:

“RDIF jointly with AFK Sistema has opened the Russian market to foreign investors after the coronavirus epidemic. The placement of Detsky Mir shares was the first successful placement of Russian equities in 2020. Demand for shares from foreign and Russian investors exceeded supply by multiple times. More than 60% of the book was signed by leading international funds from Europe, America and Asia. We see great interest and opportunities for Russian companies to enter the stock market and raise capital from leading international investors despite the global negative consequences of the pandemic.”

Bing Hu, Co-CEO and President of RCIF, said:

“RCIF’s investments in Detsky Mir are an example of successful Chinese investment in Russian companies and reflect the interest for investing in Russia. The effective and sustainable corporate governance model strengthens the Detsky Mir market share and boosts sales.”


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 80 projects with foreign partners totaling more than RUB1.9 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 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

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

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

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

Yury S. Trofimov
Russia-China Investment Fund
Moscow, Russia

Tel: +7 (495) 230-05-55 ext. 4243
Mobile: +7 (985) 765-13-12

Important Notice

The information contained herein has been provided solely for use for this announcement. By reading this announcement, you agree to be bound by the limitations set out below. This announcement do not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of any entity, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto.

Certain statements in this announcement are not historical facts and are forward looking statements. Forward looking statements include statements concerning the Russia-China Investment Fund, Sistema PJSFC (collectively, the “Selling Shareholders”) or PJSC “Detsky mir” (the “Company”), their plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, financial position and future operations and development, the Company’s or the Selling Shareholders business strategy and the trends the Company or the Selling Shareholders anticipate in the industries and the political and legal environment in which the Company or the Selling Shareholders operate and any other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward looking statements. Neither the Company nor the Selling Shareholders intend, and assume any obligation, to update any forward looking statement contained herein.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company, the Selling Shareholders or any of their respective directors, officers or employees or any other person as to the accuracy or completeness of the information contained in this document and no liability whatsoever is accepted by the Company, the Selling Shareholders or their respective affiliates, advisors, agents, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any errors or omissions of information or use of such information or otherwise arising in connection therewith.

This document and the information contained herein is for information purposes only and does not constitute or form part of any offer of, or the solicitation of an offer to acquire or dispose of securities in the United States, Canada, Australia or Japan or in any other jurisdiction in which such an offer or solicitation is unlawful. The securities referred to herein (the “Shares”) have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), or under the applicable securities laws of any state or other jurisdiction of the United States, Canada, Australia or Japan. The Shares may not be offered or sold in the United States unless registered under the Securities Act or offered in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and the securities laws of any relevant state or other jurisdiction of the United States. There will be no public offering of the Shares in the United States.

This document and any offer of securities to which it relates are only addressed to and directed at (1) in any Member State of the European Economic Area, persons who are "qualified investors" as defined in Regulation (EU) 2017/1129 (as amended, the "Prospectus Regulation"); and (2) in the United Kingdom, persons who (i) have professional experience in matters relating to investments who fall within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order"); (ii) fall within Article 49(2)(a) to (d) of the Order; or (iii) are persons to whom an offer of the Shares may otherwise lawfully be made (all such persons referred to in (1) and (2) together being referred to as the "Relevant Persons"). The information regarding the offering set out in this document must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This document is not an offer or an invitation to make offers or an advertisement of securities in the Russian Federation.