Yandex – aka Russia’s ‘Google’ – sold off at half price to Chinese investors

Showing just how far Russian companies have fallen, the parent company of Yandex – once hailed as Russia’s ‘Google’ – sold off its Russian business to China for at least 50% off market value.

The average market capitalization of Yandex N.V. over the three months ending Jan. 31 was approximately $10.2 billion (918 billion rubles), with the assets included in the deal generating over 95% of the group's revenue in the first nine months of 2023.

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The transaction is expected to be paid with a combination of shares and cash, with cash making up no less than 50%. Consequently, the seller will receive at least 230 billion rubles ($2.52 billion) in Chinese yuan and up to 176 million Class A shares of Yandex N.V. The buyer either already owns or will acquire these shares to complete the transaction.

Following the deal, the main company of Yandex will become a newly registered entity MKAO. This legal entity has acquired 99.999% of LLC Yandex as of January 2024. The main owner is Investment Fund Consortium, which is led by Yandex managers.

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Besides management, co-owners will include entities related to Lukoil, former deputy chairman of Gazprom Alexander Ryazanov, founder of LETA Capital Alexander Chachava, and CEO of Infinitum Pavel Prass.

Yandex N.V. plans to use part of the proceeds for the development of its international businesses and startups that it retains following the transaction, with a significant portion of the funds expected to be returned to the company's shareholders, likely through a share buyback program.

Yandex N.V. intends to delist from the Moscow Exchange, with the Russian entity taking its place on the exchange.

Yandex N.V. will retain the following businesses after the transaction: Nebius AI cloud platform, Toloka AI crowdsourcing platform, Avride autonomous technology, and TripleTen educational service.

The Dutch group will change its name and cease using the Yandex brands by July 31, 2024.

Previously, in March 2023, Nasdaq announced the delisting of companies with their main business concentrated in Russia: Yandex N.V., Ozon Holdings Plc, Qiwi Plc, and HeadHunter Group Plc.

American company Uber sold its stake in the Yandex.Taxi service for $702.5 million in April 2023.

Yandex co-founder Arkady Volozh expressed opposition to the war in Ukraine in August 2023.

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