Sberbank and Yandex complete deal to split their assets

Maria Nikolova

Under the terms of the deal, Sberbank has bought out a 25%+1 stake in Yandex.Money.

Sberbank Rossii PAO (MCX:SBER) today announces the closing of the deal with Yandex for splitting of their assets.

Under the terms of the deal, Sberbank has bought out a 25%+1 stake in Yandex.Money for a consideration of RUB2.4 billion at a substantial discount to the market value as the deal was closed at the price according to the shareholder agreement Sberbank and Yandex signed in 2013.

Yandex.Market B.V., which operates in Russia under the brands Yandex.Market, Beru, Superchek, etc., is being handed over in its entirety to Yandex. The value of the transaction is RUB42 billion. The aggregate pre-tax profit of the deal for Sberbank has reached around RUB20 billion.

As reported earlier, Herman Gref remains a member of the Yandex Board of Directors until Yandex holds its shareholder meeting where a new Yandex BoD will be elected. However, he does not intend to be part of Yandex’s governance board in the future.

Yandex.Money e-payment service will keep operating in the ordinary course of business. Until the end of the year Yandex.Money is set to do a rebrand and approve its development strategy.

Yandex.Money’s business registered a several-fold increase after Sberbank acquired its controlling interest. In 2019, the company’s turnover rose 13 times to reach RUB502.7 billion, while its EBITDA saw a 16-fold increase to reach RUB2.9 billion. The company’s net profit in 2019 stood at RUB1.9 billion, and its net assets were worth RUB6.9 billion as of December 31, 2019.

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