The 'discounted' Yandex offload

The internet giant is poised to divest its remaining Russian businesses for $5.2 billion

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Yandex N.V., the Dutch parent company of the prominent Russian internet firm of the same name, is selling its remaining Russian businesses for $5.2 billion, a significant markdown attributed to a "mandatory discount" imposed by the Russian government on sales of assets by companies incorporated in "unfriendly" countries. This move (obviously) comes amid geopolitical pressures following Russia's invasion of Ukraine.

Yandex, often referred to as "The Google of Russia," had previously performed well as a public company but faced challenges after sanctions were imposed due to the conflict in Ukraine. The company's CEO, Arkady Volozh, was forced out due to EU sanctions, leading to divestments and corporate restructuring efforts to distance itself from its Russian roots.

The transaction, subject to regulatory and shareholder approval, will be paid partly in cash (in Chinese Yuan) and involves a consortium led by senior managers from Yandex's Russian businesses and other investors. The businesses being sold represent the majority of Yandex's revenues, assets, and employees.

The deal is expected to close in two stages, with Yandex retaining ownership of some early-stage technology businesses and investments in various technology companies.

Yandex believes the transaction will allow shareholders to recover some value for the divested businesses while unlocking growth potential for its international businesses and enabling the divested businesses to operate under new ownership.