Cleary Gottlieb represented Sistema PJSFC (LSE: SSA, MOEX: AFKS), a Russian public diversified holding company, and its affiliate LLC Megapolis-Invest in its acquisition of a 64.37% stake in Elektrozavod group of companies (Elektrozavod Group) from Russian private investors for RUB 24.7bn (approximately $335 million.)
The acquisition aims to achieve the goal of creating Russia’s leading manufacturer of transformer equipment and implementing a real estate development project on land plots located in Moscow owned by the Elektrozavod Group.
The transaction is financed by Sistema from its own funds as well as certain third-party partners. The transaction was signed on December 23, 2020, and completed on December 28, 2020 following registration of the stake transfer in the Russian state register.
Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre, and land plots totaling 19 hectares near the Elektrozavodskaya metro station in Moscow.
Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism, and healthcare services. The company was founded in 1993.