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Russia-Chinа Investment Fund acquired 23.1% of JSC Detsky Mir

Moscow, 11 January, 2016 – The Russia-Chinа Investment Fund (RCIF) has acquired 23.1% of JSC Detsky Mir (“Detsky Mir” or “Detsky Mir Group” or “the Group”) from CJSC DM Finance, which is a subsidiary of Sistema JSFC (“Sistema” or “the Company”), a publicly-traded diversified holding company. The total consideration of the transaction is RUB 9.75 billion.

Under the terms of the agreement, significant funds from the transaction will be invested in expanding Detsky Mir’s nation-wide network of stores and further developing its logistics platform. This will also extend its modern sales and distribution channels for children’s products throughout Russia and the CIS. Additionally, the Group is considering opportunities for international expansion in the mid-term perspective.

Kirill Dmitriev, CEO of RDIF and Co-CEO of RCIF,said:
“Detsky Mir is building an amazing success story in children goods retail in Russia and the CIS. Partnership with Sistema and Detsky Mir offers a great experience for RCIF, and we are glad to take our relationship with them to the next level and to support Detsky Mir’s development and expansion to international markets, including China and other counties. The deal is in line with our investment strategy focused on growth of the middle class and its demand for goods, especially in the regions.”

Hu Bing, President and Co-CEO of RCIF, said:
“We are confident that Detsky Mir is well positioned to operate successfully in the challenging market environment. The company continues to expand and we hope that RCIF’s investment will support its growth and further enhance its performance.”

Mikhail Shamolin, Sistema President and CEO, said:
“We are delighted to welcome RCIF as a strategic investor in Detsky Mir Group, as we share the same vision for the development of this asset. We are confident that RCIF’s investment will enable Detsky Mir Group to strengthen its competitive advantages, and will contribute to the further growth of the value of the business.”

Upon completion of the transaction Sean Glodek and Lei Teng will be nominated to the board of directors of Detsky Mir on behalf of RCIF.

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Detsky Mir Group owns the Detsky Mir and ELC (Early Learning Centre) chains, and is Russia’s largest retailer of children’s goods. As of the end of 2015, the Detsky Mir Group’s retail network consisted of 425 stores with a total retail space of 504,000 m². The Group’s stores operate in 148 cities in Russia and Kazakhstan. The Group’s revenue for the nine months of 2015 was RUB 40.0 billion, a year-on-year increase of 34.1%. The Detsky Mir brand has existed in Russia for more than 50 years. Further information at  www.detmir.ru

Russia-China Investment Fund (RCIF) is a private equity fund established to invest in unique opportunities which have appeared as a result of rapid development of economic cooperation, fast growing trade, and increasing purchasing power of the middle class in Russia, China and CIS countries. The Fund was created by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC). RCIF is primarily focused on cross-border transactions, as well as investment opportunities within the economic region across a broad range of sectors to facilitate both countries’ the structural reforms and economic efficiency. Further information at www.rcif.com

Russian Direct Investment Fund (RDIF) was 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. Further information at www.rdif.ru

Sistema is a publicly-traded diversified holding company, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of RUB 515.9 billion for the nine months of 2015, and total assets of RUB 1.2 trillion as at September 30, 2015. Sistema’s global depository receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the symbol “AFKS” on the Moscow Exchange. Website: www.sistema.com

For further information, please visit www.rcif.com or contact: 
Tony Han
Director 
Tel: +86 10 5762 9001 
E-mail: 
dong.han@rcif.com

For further information, please visit www.rdif.ru or contact: 
Maria Medvedeva
Director, Media Relations Department 
Tel: +7 495 644 34 14, ext. 2141 
Mobile: +7 964 726 17 73 
E-mail: 
mm@rdif.ru

For further information, please visit www.sistema.com or contact:

Investor Relations Public Relations
Yulia Katukova Sergey Kopytov
Tel: +7 (495) 692 22 88 Tel.: +7 (495) 228 15 32
katukova@sistema.ru kopytov@sistema.ru