Sistema PJSFC, a publicly traded diversified Russian holding company, announces it has acquired an equity interest in JSC Pharmaceutical Enterprise Obolenskoe (OBL Pharm), a leading Russian pharmaceutical company. The stake was acquired jointly with VTB Bank and management of OBL Pharm from Alvansa Ltd, which is majority-owned by Gazprombank and UFG Private Equity. Sistema invested a total of RUB1.83bn in the acquisition of OBL Pharm, giving Sistema an effective stake in OBL Pharm of 11.7%.The investment consortium – consisting of Sistema, VTB and members of the OBL Pharm management team acquired 95.14% of OBL Pharm for a total investment of RUB15.5bn. The transaction aims to create a leading Russian pharmaceuticals group following the merger of OBL Pharm with JSC Binnopharm, a Sistema portfolio company. OBL Pharm and Binnopharm will be combined to create a unified company that is a top-10 Russian pharmaceutical company in the non-statesector with a diversified portfolio of over 200 products. Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said: “As one of the leading companies in the highly prospective Russian pharmaceutical market, OBL Pharm has a strong track record in increasing its business operations and is pursuing ambitious development plans. The merger with Binnopharm will serve as a new impetus for further expansion. We strongly believe that VTB Group’s broad experience and financial resources will significantly enhance the company’s shareholder value and ensure attractive returns for both existing shareholders and potential new investors.”