AFK Sistema increased its stake in Etalon Group

AFK Sistema increased its stake in the development company Etalon Group from 25.6% to 48.8% for 4.5 billion rubles.The developer is among the ten largest Russian companies in terms of housing construction

Sistema Finance (a subsidiary of AFK Sistema) acquired for 4.5 billion rubles. more than 72.8 million global depositary receipts of the Russian developer Etalon Group, according to a message from the company's press service received by RBC.

“The agreement concluded in May 2021 between AFK Sistema and its financial partner on a non-deliverable swap in respect of global depositary receipts of Etalon Group PLC has ceased to be valid,” Sistema said in a statement.

After the company acquired 72,854,619 depositary receipts, Sistema's effective share in Etalon Group increased to 48.8%.

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AFK "Sistema" in its message does not specify the name of its "financial partner". At the same time, in mid-May last year, the company entered into an agreement with Alfa-Bank on a non-deliverable swap of up to 20% of the developer's shares. The agreement was concluded for 30 months, "subject to a number of cases of early termination." At that time, a subsidiary of AFK Sistema owned 25.6% of Etalon Group.

Earlier, a representative of AFK Sistema explained that the swap agreement provided for the transfer to AFK Sistema of property rights in the form of receiving dividends, while voting rights were assigned to Alfa-Bank.

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Etalon Group was founded in 1986 in St. Petersburg by businessman Vyacheslav Zarenkov, he and his family were the largest shareholders of the company. Three years ago, in 2019, AFK Sistema acquired 25% of the developer, at the same time Etalon Group became the key owner of the Leader-Invest development company, which belonged to the corporation of entrepreneur Vladimir Yevtushenkov.

Etalon Group is one of the top 10 developers in terms of housing construction in Russia. In 2020, the company sold 538 thousand sq. m. m of real estate, which is 15% less than in 2019. In addition to the construction and sale of housing, Etalon Group performs construction work as a contractor. In 2020, Etalon Group paid out RUB 3.5 billion to shareholders. dividends.

In the last financial year, sales of Etalon Group grew in monetary terms to 84 billion rubles. — by 6%. At the same time, 446.48 thousand square meters were sold in 2021. m of real estate, which is 16% less than the results of 2020, however, the average price of 1 sq. m of residential real estate increased by 34%.

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