OREANDA-NEWS. December 10, 2010. Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is the major shareholder of, companies operating in different industries, announced that Sberbank has completed the acquisition of 25%+1 share stake in OJSC Detsky Mir-Center (“Company”). Sberbank acquired the stake in the Company through the purchase of an additional share issue in a private placement, for a total consideration of approximately RUB 3.4 billion, reported the press-centre of Sistema.

The proceeds of the additional share issue will be used to strengthen the Company’s capital structure and to develop and expand its retail chain, with its selection of safe, affordable, quality children’s goods, throughout the country. 
 
The strategic objective of the shareholders is to use the proceeds of the investment to grow the value of the business, with the ultimate aim of attracting a strategic investor or achieving a similar liquidity event.  If such liquidity event is not achieved within three years, and under certain other conditions, Sberbank will have the right to sell its stake in the Company to Sistema.  The parties also agreed to certain pre-emptive and tag-along and drag-along rights in relation to their respective stakes in the Company.  As a 25%+1 shareholder of the Company, Sberbank is able to elect two out of eight board members, and Sberbank's two representatives have already joined the Company's board.