Sistema Divests Majority Stake in Leader Invest to Etalon for $233.9 Million

February 19, 2019

Cleary Gottlieb represented Sistema PJSFC (Sistema) in the $233.9 million sale of approximately 51 percent in Leader Invest JSC (Leader Invest) to Etalon Group PLC (Etalon).

As a result of the transaction, Sistema’s stake in Leader Invest decreased to approximately 49 percent.

The transaction was signed and closed on February 19, 2019.

Leader Invest is one of the largest developers in the Moscow residential real estate market in terms of portfolio size and the number of completed projects. Its portfolio includes club-format residential complexes in the comfort, business, and premium classes, as well as large-scale integrated mixed-use development projects. Leader Invest’s portfolio comprises 39 projects with total net sellable area of around 1.3 million square meters.

Etalon is one of Russia’s leading real estate development and construction companies and one of the largest and oldest residential property developers in the Russian market, occupying a leading position in St. Petersburg and increasing its presence in the Moscow region. As of June 30, 2018, its portfolio comprised 39 projects, primarily in the highly profitable comfort and business-class segments, with total unsold net sellable area exceeding 2.73 million square meters. Etalon’s global depositary receipts are listed under the ETLN ticker on the London Stock Exchange.

Sistema is a large private Russian conglomerate, which investment portfolio comprises stakes in predominantly Russian companies representing various sectors of economy, including telecommunications, retail, timber processing, agriculture, high technology, banking, real estate, healthcare services, and hospitality. Sistema’s global depositary receipts are listed under the SSA ticker on the London Stock Exchange.

For more information, please see the press release here.