Forbes learned about the possible scheme of the transaction for the sale of a majority stake in Yandex

Since last fall, Yandex has been in the process of restructuring its business management. After the start of the Russian-Ukrainian conflict, Arkady Volozh was subject to sanctions and it was decided to split Yandex into Russian and foreign companies.

According to a Forbes source, the company’s management and shareholders hope to complete the deal before the end of the year, probably in November. However, the outcome largely depends on the presidential administration, board of directors and sanctions risks.

The agreement being discussed means that the Dutch Yandex NV will create a Russian subsidiary. Russian investors will buy a share of the subholding company.

This subholding is planned to include almost all of Yandex’s business, in addition to several startups. According to the source, Yandex NV was required to obtain licenses to use some of the intellectual property associated with these new companies. Today, such a scenario is “a big question.”

“The absence of these licenses from Yandex NV and Volozh is bad, but not a disaster. They can rewrite the code so as not to be accused of intellectual property theft, but this will take approximately several months to a year,” says the interlocutor of the publication.

Investors

The circle of potential investors, according to the source, includes businessmen Ivan Tavrin and Vladimir Potanin, Faberlic founder and deputy Alexey Nechaev, RDIF CEO Kirill Dmitriev, as well as the VTB group and the Gazfond pension fund . A Lukoil representative also participates in the negotiations.

However, Kismet Capital did not confirm Tavrin’s interest in the assets to the publication.

In addition, according to the source, some potential investors are considered “front men” by the chairman of ADB Management’s advisory board, billionaire Yuri Kovalchuk, and his partners. His area of ​​interest may include up to 40% of Yandex.

Scheme

Each of the seven consortium participants is expected to receive 7.28% of the company, Forbes’ source notes. According to another source in the publication, market participants ironically call this scenario “seven equidistant bankers.”

Finance

During the negotiations, the company’s valuation of $5.5 billion was mentioned, an amount that takes into account a 50% discount. The banks that will finance the transaction are VTB and Rosselkhozbank. According to the top manager of a large credit institution, the top 10 banks will participate in the financing of the transaction.

Alexei Kudrin

In December last year, after leaving the position of president of the Accounts Chamber, Alexey Kudrin took the position of corporate development advisor at Yandex. The media wrote that Volozh offered Kudrin a 5% stake in Yandex to help split the company’s Russian and international businesses.

However, in the summer, Kudrin was subject to US sanctions. According to the source, this fact had a negative impact on the situation. According to the original plan, the former head of the Accounts Chamber was to, in particular, coordinate the transfer of intellectual property licenses and some projects to Volozh.

“And now there is no time for licenses and the deal is already being prepared without your special participation. “Kudrin’s position as Volozh’s successor, which was evident before the sanctions, was no longer evident after the sanctions,” the source explained.

He added that the board of directors of the new Yandex will not be led by Kudrin, but by investors.