Yandex buying a bank

RUSSIA / FSU POLITICS - In Brief 23 Sep 2020 by Alex Teddy
On September 21 it was announced in the London Stock Exchange that Yandex is purchasing a new Russian bank called Tinkoff. The price is USD 5.5 billion. The agreement has not yet been inked. Tinkoff shareholders have to vote on it.Yandex will buy Tinkoff shares for USD 27.64 apiece. That is a 6% premium on Tinkoff's closing price on September 22. Yandex will buy 100% of Yandex's shares.Yandex shares on the Nasdaq went up 3.5% when the news was announced. Yandex and Tinkoff shares have appreciated in value under coronavirus. Both are at their peak.Yandex is Russia's answer to Google. It has a joint venture with Sberbank but that ended.Tinkoff is an online bank. It was founded by Oleg Tinkov hence the name. Its profit were USD 570 million in 2019 which is double the year before.Yandex made a USD 180 million profit in 2019. Its revenue was USD 2.8 billion. Most of it came from searches. Half of Russian online advertising is via Yandex. Yandex has a taxi service, carsharing, self-driving cars and food delivery service. In 2019 Tinkov first mooted a link up between his bank and Yandex. Yandex was founded by Arkady Volozh. Yandex's market capitalization is worth over USD 200 billion.Tinkov was charged by the US Securities and Exchange Commission with tax fraud for hiding USD 1 billion in assets. He was treated in the UK for leukemia. There is draft legislation in Russia to limit the amount of Russian tech companies that foreigners can own. Yandex has some US shareholders. The news drove down Yandex shares. The government compromised and made the company a public interest foundation. The board of directors has to be government approved. The directors can veto major ownership ...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.