The purchaser, Consortium.First, is a recently established closed-end mutual investment combined fund managed by the Russian joint-stock company and licensed trust manager Solid Management, serving as trustee
Technology company Yandex has agreed to sell all the group’s businesses in Russia and certain international markets to a purchaser consortium for RUB475bn ($5.24bn).
The buyer is Consortium.First, a newly created closed-end mutual investment combined fund managed by Russian joint stock company and licensed trust manager Solid Management, as trustee.
Consortium.First is led by members of the senior management team of Yandex’s Russian businesses and supported by four financial investors.
According to the terms of the definitive agreement, Yandex will divest its entire interest in IJSC Yandex, an international joint stock company incorporated in Russia that will hold all of the former’s assets and operations in Russia and certain international markets.
The technology company will also continue to hold a portfolio of international businesses and other non-Russian assets, including four early-stage technology businesses and other assets. These include Nebius AI, Toloka AI, Avride, TripleTen, a data centre located in Finland, and minority investments in other technology businesses.
The consideration is expected to be paid in a combination of a cash equivalent of at least RUB230bn ($2.54bn) and the transfer of up to nearly 176 million Yandex Class A shares.
Yandex board of directors chairman John Boynton said: “Since February 2022, the Yandex group and our team have faced exceptional challenges. We believe that we have found the best possible solution for our shareholders, our teams and our users in these extraordinary circumstances.
“The proposed transaction will allow shareholders to recover some value for the businesses that we are divesting, while unlocking new growth potential for the international businesses we will retain and enabling the divested businesses to operate under new ownership.”
The deal will be executed in two closings where the first one will see the divestiture of a controlling stake of about 68% to the consortium.
Subject to certain preceding conditions including receipt of required regulatory approvals, shareholder approval, and absence of any sanctions or prohibition on completion, the first closing will take place in the first half of 2024.
The second closing, where the buyer will pay for the remaining stake, will occur within about seven weeks after the first closing.