Yandex NV Contemplates Full Exit: Major Restructuring and Potential $6 Billion Deal

The Dutch holding company of the tech giant Yandex, known as Yandex NV, is contemplating the sale of all its assets in Russia in one go, rather than just a controlling stake.

This decision is being considered as various parties aim to finalize the deal before the end of the year.

Yandex, often dubbed “Russia’s Google,” has been undergoing corporate restructuring for several months, with the primary goal of recovering shareholder funds.

The planned sale includes significant revenue-generating Russian businesses, such as search and ride-hailing operations. Following this divestment, Yandex NV intends to focus on developing four other business lines on an international scale.

The restructuring is a response to geopolitical events, particularly Russia’s conflict with Ukraine starting in February 2022.

Yandex has historically been one of the few Russian companies with substantial global ambitions. It currently dominates the taxi and online advertising sectors within Russia.

Regarding the potential sale, sources suggest that Yandex NV might sell 100% of a holding company established in Russia’s Kaliningrad region. While a complete exit from Russia is considered likely, it has not been definitively decided.

In this scenario, Yandex NV would sever its ties with Russia, and buyers may not necessarily acquire the entire 100% of the assets. Yandex management and other Russian investors could also retain stakes in the company.

The estimated total value of the deal is around 560 billion roubles ($6.18 billion), factoring in a 50% discount demanded by the Kremlin for foreign asset sales. Another source suggests the transaction could be approximately $5 billion.

In May, there were reports of Russian billionaires offering bids of around $7 billion for a 50% stake in the company.

In summary, Yandex NV is exploring the possibility of selling all its Russian assets as part of a larger restructuring strategy, responding to geopolitical challenges and aiming to recover shareholder funds.

The transaction, if completed, could have significant financial implications, with potential buyers, including Russian investors and management, playing a role in the final ownership structure.

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