In an intra-group deal aimed at boosting its FinTech business, Mobile TeleSystems (MTS) has acquired a 30% stake in Sistema Capital Management Company (Sistema Capital) for RUB356 million (USD6.15 million). A press release says that the move will enable MTS ‘to enrich its existing portfolio with contemporary investment products, as well as create an opportunity to draw assets from a wide range of investors to participate in equity and debt capital markets and manage its own funds and securities in a more efficient way.’ Alexey Kornya, MTS Vice President, Finance, Investments and M&A, commented: ‘Thanks to the strategic cooperation of MTS and MTS Bank, today there are more than 35 million people using MTS financial services. Collaboration with Sistema Capital will boost the number of FinTech users among MTS subscribers and allow MTS to provide brand new online investment products accessible from mobile devices with a yield exceeding bank deposit rates.’
Concurrently, MTS’ largest shareholder, the Sistema conglomerate, will contribute roughly RUB513 million to the authorised capital of Sistema Capital, thus reducing its stake to 70% whilst increasing the book value of Sistema Capital net assets to RUB1 billion.
Sistema Capital manages securities and assets of investment funds, unit investment funds and non-state pension funds, with a total portfolio in 2016 amounting to more than RUB25 billion. According to Investfunds, Sistema Capital is the sixth largest company in Russia in terms of collective investments volume.