Sistema pledges 16% in MTS to Sberbank against loan to pay Rosneft

MOSCOW, Mar 7 (PRIME) -- Russian multi-industry holding Sistema has pledged 320 million shares, or 16%, in mobile operator MTS with the pledge value of 64.6 billion rubles to top bank Sberbank against a loan agreement signed on February 16, as seen by PRIME in materials of the company late on Tuesday.

In December 2017, the Arbitration Court of the republic of Bashkortostan confirmed a peaceful settlement of a 170.6 billion ruble case by oil major Rosneft against Sistema. Under the agreement, Sistema and its affiliate Sistema-invest will pay 100 billion rubles to Rosneft’s affiliate Bashneft in several installments no later than March 30.

Sistema said later that it signed an agreement to borrow 40 billion rubles from the Russian Direct Investment Fund (RDIF) and Gazprombank for 180 days to fulfill its obligations under the amicable agreement on Bashneft. The loan was secured by 52.009% shares in children goods retailer Detsky Mir and 90.47% in Bashkir Power Grid Company.

The multi-industry holding also opened a 105 billion ruble 5-year credit line with Sberbank secured by shares in MTS. The company did not disclose the stake in MTS that it pledged under the loan then, but a source familiar with the matter told PRIME that Sistema would pledge 11% in MTS as soon as it receives the 40 billion ruble it would pay Bashneft.

On Tuesday, a source close to Sistema said that the company pledged more than 11% in MTS as it took out a 64.6 billion ruble loan, not a 40 billion ruble loan. Of the sum, the company used 40 billion rubles to pay Bashneft and 20 billion rubles to refinance existing loans, the source said.

(56.5041 rubles – U.S. $1)

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