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Russian search engine Yandex to sell business in home country
YNDXYandex(YNDX) Proactive Investors·2024-02-06 08:06

Core Viewpoint - Yandex NV, known as "Russia's Google," is selling its operations in Russia for approximately US5.2billioninacash−and−sharetransaction,transitioningitscorebusinesstoaconsortiumofdomesticinvestors[1][2]Group1:CompanyOperations−ThesaleinvolvesYandex′scoreRussianbusiness,whichistheprimarysourceofitsrevenue,andwillbeledbyRussianinvestors,includingLukoil[1]−Yandexplanstospinoffsomeofitsinternationaloperationsbeforethesaleisfinalized[1]Group2:MarketContext−PriortotheUkraineconflict,YandexaimedtoexpandinternationallyandhadapeakvaluationofUS5.2 billion in a cash-and-share transaction, transitioning its core business to a consortium of domestic investors [1][2] Group 1: Company Operations - The sale involves Yandex's core Russian business, which is the primary source of its revenue, and will be led by Russian investors, including Lukoil [1] - Yandex plans to spin off some of its international operations before the sale is finalized [1] Group 2: Market Context - Prior to the Ukraine conflict, Yandex aimed to expand internationally and had a peak valuation of US30 billion [1] - The ongoing war led to a significant exodus of employees and a distancing of international investors and partners from the company [1] Group 3: Financial Implications - The deal is subject to a mandatory discount of at least 50% to the company's fair value, as mandated by the Russian government for the exit of international companies [2] - Yandex is expected to remain a private entity, with management retaining control over major decisions and strategies [2] Group 4: Government Perspective - Dmitry Peskov, spokesperson for Putin, emphasized the importance of Yandex as a national champion in high tech and its continued operation within Russia [2]