Parent company of Yandex group reaches agreement to sell its Russian business

(MENAFN) Yandex NV, the parent company of the Yandex group, has recently finalized a groundbreaking agreement to divest its Russian business, marking a significant shift in the landscape of Russia's technology sector. This move comes as part of Yandex's strategic initiative to sell its Russian operations, including the widely used search engine often referred to as "Russia's Google," to a consortium of private investors.

The deal, valued at an impressive 475 billion rubles (USD5.2 billion), will be executed through a combination of cash and shares of the parent company, representing a pivotal moment in Yandex's corporate journey. The agreement also encompasses the spin-off of Yandex's main international projects, reflecting the company's comprehensive restructuring efforts.

The sale price, as outlined in the agreement, takes into consideration a mandatory discount of at least 50 percent to fair value, aligning with Russian law governing divestment procedures for foreign entities exiting the country. Yandex NV is set to relinquish its entire interest in IJSC Yandex, an international joint stock company incorporated in Russia that holds all of Yandex's assets and operations in Russia and specific international markets.

The consortium of private investors, spearheaded by the company's management, will acquire stakes in Yandex International PJSC. This strategic move is poised to unlock new growth potential for Yandex's retained international businesses while providing shareholders with the opportunity to recover value for the divested Russian operations.

Chairman John Boynton emphasized the significance of the proposed transaction, stating that it allows shareholders to derive value from the businesses undergoing divestment. Simultaneously, it positions the retained international businesses for sustained growth, underscoring a nuanced approach to corporate restructuring.

As Yandex ushers in this transformative phase, the implications of the divestment deal are poised to reverberate across the technology sector in Russia and the broader global business landscape. The strategic realignment of Yandex's corporate portfolio signals a new chapter for the tech giant and paves the way for enhanced focus and growth in its international endeavors.

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