AFK Sistema Group of Companies Purchased the Rostec’s Stake in Sintez, OJSC
The Nacimbio Holding of the Rostec State Corporation sold a block of shares making 32.4% of the authorized capital of Sintez, OJSC (a member of the Binnopharm Group), a company held by Sistema Telecom Assets, a subsidiary of AFK Sistema, PJSC.
According to Vladimir Chirakhov, President of AFK Sistema, "Increasing the share in the authorized capital of Sintez, OJSC is in line with the AFK Sistema’s strategy to expand its presence in the pharmaceutical sector and to build up one of the industry leaders based on the Binnopharm Group. At the same time, we continue to cooperate with Nacimbio and the Rostec State Corporation under several pharmaceutical projects, including the production of Regevac B vaccine against hepatitis B."
Andrey Zagorsky, Nacimbio’s CEO: "Nacimbio has focused on the development of biopharmaceutical companies under the Holding’s management to bring modern full-cycle Russian-made immunobiological drugs to the market. Our transaction with AFK Sistema, which resulted in the sale of our stake in Sintez engaged in the production of chemicals and medical devices, is part of this strategy implementation. During our joint asset management with AFK Sistema, the Company increased its capacity for the production of pharmaceutical substances, revamped its production facilities, and showed an increase in financial indicators. In the Group, we have found a reliable and effective partner to continue our cooperation in the field of our direct interests, namely, the development and manufacture of modern products for preventive immunization."
The Binnopharm Group is a Russian full-cycle pharmaceutical holding with five production sites located in different regions of Russia: Alium, OJSC (the former Obolenskoye in the Serpukhovo District, Moscow Region), Binnopharm, OJSC (with 2 sites: in Zelenograd and Krasnogorsk), Sintez, OJSC (Kurgan), Biocom, CJSC (Stavropol). The Holding’s companies produce a wide range of drugs in various therapeutic groups and collectively have the largest portfolio of medicines among the Russian manufacturers, with more than 450 registration certificates, including Sputnik V vaccine for the prevention of coronavirus infection. The effective share of AFK Sistema together with VTB in the Binnopharm Group is 79% of its stock capital; the share of a consortium of investors representing the Russia-China Investment Fund, that was established by the Russian Direct Investment Fund and the China Investment Corporation, as well as the share of major Middle East funds, is 15.8%. The remaining 5.2% of the Binnopharm Group shares are distributed among minority individual shareholders. The effective share of Binnopharm Group in Sintez, OJSC is 56.2%.
AFK Sistema, PJSC is a publicly traded Russian investment company with a diversified portfolio of assets serving about 150 million consumers in various industries, such as telecommunications, high technology, banking, retail, e-commerce, timber processing, agriculture, real estate, tourism, and medical services. The Company was established in 1993. Its revenue in 2019 reached 656.9 billion rubles, the total assets as of December 31, 2019 amounted to 1.3 trillion rubles. AFK Sistema’s Global Depositary Receipts are traded under the SSA ticker on the London Stock Exchange. The Company’s ordinary shares are listed on the Moscow Stock Exchange under the AFKS ticker. Website: www.sistema.ru
The National Immunobiological Company (Nacimbio) was established for creating a holding company (an integrated structure) of the Rostec State Corporation in the development and production of immunobiological products. The Holding should ensure the Russian Federation’s independence from imports in the health care and drug supply. To accomplish these tasks, the Holding’s management contour has included Microgen Scientific and Production Association, FORT, LLC, and Sintez, OJSC.
The Rostec State Corporation is one of the Russia’s largest industrial companies combining more than 800 scientific and industrial entities in 60 regions of the country. Its key areas of activity are aircraft construction, radio electronics, medical technology, innovative materials, etc. The Corporation’s portfolio includes such well-known brands as AVTOVAZ, KAMAZ, United Aircraft Corporation, Russian Helicopters, United Engine Corporation, Uralvagonzavod, Schwabe, Concern Kalashnikov, etc. Rostec is actively involved in the implementation of all 12 national projects. The Company is a key supplier of the Smart City technology; it is engaged in the digitalization of public administration, industrial enterprises, and social sectors. Rostec is planning to develop 5G wireless communications, Industrial Internet of Things, big data, and blockchain systems. Rostec partners with leading global manufacturers such as Boeing, Airbus, Daimler, Pirelli, Renault, etc. The Corporation’s products are supplied to more than 100 countries worldwide. Almost one third of the Company’s revenue comes from exports of high-tech products.