The Dutch holding company behind Yandex N.V. (NASDAQ:YNDX) penned a deal with a purchaser consortium to sell its entire businesses in Russia and certain international markets for RUB475 billion (around $5.21 billion).
The market capitalization of Yandex is calculated at about $10.2 billion (RUB 918 billion) based on the volume-weighted average sale price per Class A Share on the Moscow Exchange in the three months ending January 31, 2024.
The divestment price comprises company's cash balance of at least RUB 230 billion and Class A shares of about 176 million.
Notably, Yandex will pay the cash consideration in Chinese Yuan (CNH) outside of Russia.
The sales price reflects a mandatory discount of at least 50% to "fair value," as Russia's government must approve deals involving foreign asset sales, demanding a discount of at least 50%.
The divestiture is projected to be implemented in two closings, with the first anticipated to close in the first half of 2024 and the second closing to occur within approximately seven weeks following the first closing.
Post divestiture, Yandex expects to refocus on four international business lines.
John Boynton, Chairman of the Board of Directors of Yandex, said, "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. Yandex is a unique story."
Last year, Yandex received its delisting notice from Nasdaq, and its Class A shares continue to be registered under the U.S. Securities Exchange Act.