OREANDA-NEWS. Sistema JSFC ("Sistema" or the "Company") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that MTS BV, a wholly owned subsidiary of Mobile TeleSystems OJSC ("MTS") concluded a transaction to acquire a minority stake in MTS Bank OJSC ("MTS Bank").

MTS acquires a 25.095% stake in MTS Bank for approximately RUB 5.1 billion through an additional share issue, in line with the terms announced on October 25, 2012. The transaction is fully in line with Sistema's strategy of unlocking synergies between financial and mobile services and MTS's 3i Strategy, which calls for the expansion into lines of business that complement its extensive telecommunications and retail networks. The proceeds from the transaction will be used to finance expansion of the joint MTS Dengi project.

All regulatory approvals necessary for completion of the transaction, including antimonopoly and Russian Central Bank approvals, have been received. Completion of the transaction is expected next week with subsequent registration of the share issuance report by the Russian Central Bank. Following the transaction Sistema's direct stake in MTS Bank will be 65.25%.

In connection with the deal, MTS and MTS Bank signed a share purchase agreement and MTS and MTS Bank also concluded a profit-sharing agreement whereby MTS and MTS Bank would realize 70% and 30% of the proceeds from the MTS Dengi project respectively. In addition, MTS and Sistema signed a shareholders agreement and MTS, Sistema and MTS bank signed a warranty and indemnity deed.