Yandex To Sell Russian Businesses For $5.2B

Yandex To Sell Russian Businesses For $5.2B

In a seismic move, Yandex, the internet titan, announced Monday a jaw-dropping decision to offload its Russian business to a consortium for a staggering 475 billion rubles ($5.2 billion), a move that rattled markets and grabbed global attention.

Yandex To Sell Russian Businesses For $5.2B : Unveiling the High-Stakes Deal

The Dutch parent company, Yandex NV, disclosed that after over 18 months of intense negotiations, a consortium of Russian investors clinched the deal. This historic maneuver, precipitated by the geopolitical turmoil stemming from Russia’s incursion into Ukraine, marks one of the most significant corporate exits from the nation in recent memory.

Yandex To Sell Russian Businesses For $5.2B : Triumph Amidst Turbulence

John Boynton, chair of the Yandex board, hailed the agreement as a triumph in the face of adversity. “Since February 2022, we’ve navigated exceptional challenges,” Boynton stated, alluding to the tumultuous geopolitical landscape. “We believe that we have found the best possible solution for our shareholders, our teams, and our users in these extraordinary circumstances,” he added with conviction.

Unveiling the Transactional Chessboard

The strategic move sees Yandex divesting 95% of its assets, employees, and revenue from the businesses on the selling block. Notably, the sale price, albeit hefty, is exactly half of Yandex’s market valuation, a direct repercussion of Kremlin’s stringent mandatory discount of at least 50% on businesses departing from Russian soil.

The Stage is Set for Transformation

Post-transactional makeover, Yandex NV will metamorphose into a new entity, shedding its erstwhile identity for a fresh start. The company will retain four international jewels: Nebius AI, Toloka AI, Avride (a self-driving technology company), and TripleTen (a tech skills provider), alongside its data center in Finland and minority stakes in other tech ventures.

A Complicated Ballet of Currency and Shares

The deal’s intricacies are manifold, with purchasers set to fork out nearly half of the colossal sum in cash, with the remainder in the form of Yandex’s class A shares. Notably, cash payments outside Russian borders will be transacted in Chinese yuan, injecting further complexity into an already labyrinthine arrangement.

Navigating Regulatory Storms and Shareholder Winds

Yandex emphasized that the transaction would navigate the storm of international sanctions and require regulatory green lights. Moreover, Yandex shareholders will wield their power through two upcoming voting sessions, expected to be tense affairs amidst the backdrop of this colossal corporate shake-up.

Yandex To Sell Russian Businesses For $5.2B : The Architects Behind the Curtain

The driving forces orchestrating this landmark deal are none other than the newly minted Consortium.First, spearheaded by the crème de la crème of Russian financial minds. Noteworthy players include Argonaut, Infinity Management, IT.Elaboration, and Meridian-Servis, each boasting illustrious pedigrees in the Russian financial realm.

A Tale of Resilience and Transformation

As Yandex braces for a seismic transformation, the journey ahead promises both uncertainty and opportunity. With the coffers bolstered by this historic deal, Yandex sets its sights on fortifying its remaining ventures while promising a bountiful return to its faithful shareholders through an ambitious share buyback program.

Yandex To Sell Russian Businesses For $5.2B : Conclusion

In the annals of corporate history, this epochal decision by Yandex will undoubtedly be etched as a testament to resilience amidst adversity and the relentless pursuit of growth amidst tumultuous times.