Page 102 - RusRPTJuly18

controlling stake, but at a significant control premium. Should Detsky Mir sale happen this year, Sistema might return to its normal dividend policy (11.6% yield on locals given RUB 1.19/share floor). However, VTB sees monetisation of Segezha, Steppe and Medsi looks unlikely before 2020, or possibly even later. "We estimate that Sistema trades at a deep, 64% discount to NAV [net asset value]," VTB wrote, while noting that marginal investors might attach a higher political risk to the stock for some time. Still, the bank reiterated the Buy recommendation on Sistema's shares, given the 126% estimated total return (ETR) to the 12-month target price of $7.50.
RUSSIA Country Report July 2018 www.intellinews.com