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Yandex N.V. sells Russian business to consortium led by senior managers for USD 5.25bn

  • EMIS
  • 1 min read

Yandex N.V., the Dutch-based parent company of the Russian internet giant Yandex, announced divestiture of its operations in Russia and certain international markets, accounting for over 95% of its consolidated revenues and assets, as well as the majority of its workforce. This move will see the Kaliningrad-incorporated IJSC Yandex taking over as the new parent entity of the Yandex group by the end of July 2024, with Yandex N.V. changing its name and ceasing the use of the Yandex brand.

The sale involves a consortium of non-sanctioned participants led by Consortium.First, a closed-end mutual investment fund managed by Solid Management and comprised of Yandex senior managers and four additional shareholders, including entities led by significant figures in the Russian business community and a mutual fund owned by LukOil, with no single party holding a controlling interest. LukOil disclosed that its participation would be approximately 10%.

The purchase price for IJSC Yandex is set at RUB 475bn (USD 5.25bn) in stock and cash, reflecting a substantial discount of at least 50% from the market value, fulfilling the criteria set by the Government Commission for the Control of Foreign Investments.

Following the transaction, Yandex N.V. plans to delist from the Moscow Exchange, with IJSC Yandex taking its place. 

Post-divestiture, Yandex N.V. will maintain its international business portfolio and non-Russian assets, including several early-stage technology startups in AI, autonomous driving, EdTech, and data solutions, alongside a data center in Finland and minority stakes in various tech ventures. 

Yandex will persist in its development of search, urban, entertainment, educational services, cloud technologies, autonomous vehicles, AI, and other innovative fields, maintaining its status as a technology ecosystem leader since 1997.

By Velizar Velikov – Head of M&A • Database – EMIS

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