Page 123 - RusRPTDec18

9.2.13 Other sector corporate news
AFK Sistema, the Russian multi-industry investment conglomerate of Vladimir Yevtushenko could sell all of its stake in Global Petroleum Group (GPG), an oil and gas company extracting off the shore of Grenada, Vedomosti daily reported on November 30 citing unnamed sources and confirmed by Yevtushenko himself. Sistema was forced to give up its largest oil asset Bashneft and in 2017 was sucked into a legal battle with state oil major Rosneft which acquired Bashneft after. Its largest assets today are MTS mobile operator, Detsky Mir children’s goods retailer, Steppe agricultural and forestry holding, among others. Sistema controls 50% stake in GPG, as well as an option to convert a $100mn loan into 19% in the company. GPG is valued at about $774mn, with Sistema's stake valued at $534mn. This week separate reports suggested that Sistema could be selling a controlling stake in Detsky Mir to Safmar Group of billionaire Mikhail Gutseriev for RUB35.5bn ($530mn). Analysts surveyed by Vedomosti reminded that Sistema aims to cut its debt of RUB213bn to RUB150bn by the end of the year, and believe that Yevtushenko needs cash for new investments. This year Sistema continued expanding its investment in agriculture and healthcare/pharmaceuticals, established a high- tech venture fund, and was reported to consider real estate developer Etalon acquisition.
123 RUSSIA Country Report December 2018 www.intellinews.com