Monday, July 15, 2024

Investors seek to exchange a majority of Yandex NV shares for Russian entity, announces consortium

Russian Consortium Receives Bids to Exchange Shares in Yandex Buyout Deal

Russian Consortium Leading Buyout of Yandex Receives Bids to Exchange Shares

In a major development in the tech industry, a Russian consortium leading a buyout of Yandex, often referred to as Russia’s Google, from its Dutch parent company Yandex NV, has announced that it has received bids from investors to exchange 43.9 million shares as part of the deal.

The consortium, which includes senior Yandex Russian management, a fund controlled by oil major Lukoil, and three other companies owned by businessmen Alexander Chachava, Pavel Prass, and Alexander Ryazanov, is in the process of acquiring Yandex. In May, the consortium announced terms for Yandex NV shareholders to either sell their shares or exchange them for shares in the Russian entity, MKPAO Yandex.

On Monday, the consortium revealed that it had received bids to exchange 43.9 million out of an eligible 50.0 million shares. This figure represents an estimated 99% of eligible Yandex NV shares that were not held in type C accounts, which have been effectively blocked for many foreign investors since Russia invaded Ukraine and faced Western sanctions.

Yandex is Russia’s leading tech company, offering a wide range of services including ride-hailing, food delivery, online search, and advertising. The $5.2 billion sale of Yandex is the largest deal by a Western-held company to exit Russia since the start of the war, with a mandatory discount of 50% required by Russian law for the sale of Russian assets by parent companies in “unfriendly” countries.

Yandex NV plans to rebrand itself and retain a portfolio of international businesses and non-Russian assets, including a Finnish data center and minority investments in other tech companies.

This buyout marks a significant shift in the Russian tech landscape and highlights the impact of geopolitical events on the business world. Stay tuned for more updates on this story.

(Reporting by Mark Trevelyan; Editing by Kim Coghill and Louise Heavens)

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