OREANDA-NEWS. August 20, 2009. Sistema placed a 5-year, RUB20bn bond at 14.75%.

View: Sistema plans to issue another RUB19bn in Q4. In the fourth quarter the company should also receive US 1.3bn from the sale of its 51% in Comstar and US500m as a dividend from MTS. All in all, Sistema should have almost US 3bn cash at the end of 2009 after paying off its short term debt, reported the press-centre of OTKRITIE FC.

The company says that there is no connection between recent fundrasing and the news concerning its interest in Infineon, as this matter is a long term process far from being closed. We think that Sistema is likely to buy out all minorities in Bashkirian oil stocks: BANE, NUNZ, UNPZ, UFNC, UFOS, BANP. However, this will not require more than US 1bn, in our view.

Valuation: Sistema trades at a 39% discount to sum of its publicly traded parts.

Action: Market speculation regarding some new M&A and stock should increae in the upcoming weeks. Q2 results for Sistema, due out in mid-September, should help flesh out the company's plans.