(Finance) – Yandexa Russian company listed on the Nasdaq that provides various internet services, has entered into a agreement with a consortium of Russian investors for the sale of all group activities in Russia and in some international markets. The total consideration for the sale will be 475 billion rubles (approximately €4.84 billion), subject to adjustments and payable in a combination of cash and Class A shares (at least 50% of the consideration will be in cash).
“Since February 2022, Yandex Group and our team have faced exceptional challenges. We believe we have found the best possible solution for our shareholders, our teams and our users in these extraordinary circumstances – said the president John Boynton – The proposed transaction will allow shareholders to recover some value for the businesses we are divesting, while unlocking new growth potential for the international businesses we will retain and allowing the divested businesses to operate under new ownership.”
The value of the consideration reflects one mandatory discount of at least 50% compared to “fair value”, currently imposed as a condition of Government Commission approval for sales of Russian assets by parent companies that are incorporated in countries considered “hostile” by the Russian government, including the Netherlands where it is headquartered Yandex, often referred to as “the Russian Google”.
There capitalization Yandex’s market share (including assets to be divested and international assets to be retained) was approximately $10.2 billion (918 billion rubles) based on the average price on the Moscow Stock Exchange in the three-month period ending 31 January 2024. Le assets sold they represented more than 95% of consolidated revenues in the first nine months of 2023 and approximately 95% of the group’s assets and employees.
The consideration will be paid in a combination of a cash equivalent of at least 230 billion rubles; and the transfer of up to approximately 176 million Class A Shares. Yandex intends to retain a portion of the net cash consideration to finance the development of the retained international businesses and, ultimately, return a substantial portion of such net proceeds to the remaining shareholderswhich it currently expects will be through a share repurchase offer.
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