Page 116 - RusRPTJan22

to 16% in 2022F, more fairly reflecting our mid-cycle
assumptions.
● The stock has performed strongly in 2021, with a 35% YTD
surge on the robust financial results. In the longer term, we associate a rerating with operational improvements after the aggressive organic expansion, ramp-up of the Russian Far East project, M&As and sector consolidation with appealing returns, and higher dividends after the completion of the capex cycle.
9.2.7 TMT corporate news
● Yandex
Turkish company Enka Insaat has signed a EUR 500mn (RUB 41.5bn) contract with Yandex (not including VAT) to build YNDX’s new headquarters in Moscow, Bloomberg reported yesterday, 14 December, citing a public filing. The parties plan to complete the project in 2Q24. A YNDX representative confirmed to Interfax that Enka Insaat will be the general contractor on the project. As a reminder, YNDX bought a plot of land for the new headquarters for $145mn in December 2018. Back then, industry sources quoted by media outlets estimated that the project would cost $275-330mn in total if excluding the cost of land, according to Interfax.
● VK
Sogaz’s BoD has approved the acquisition from USM of 45% in MF Technologies, a structure controlling a 57.3% voting stake and a 4.8% economic stake in VK. The terms of the deal were not disclosed. We see a chance that the new strategic investor may help bring about positive changes to the company’s strategy, positioning and execution. That said, at this stage it remains unclear how involved Sogaz is planning to be in VK’s strategy and governance.
VK CEO Boris Dobrodeev has decided to step down, according to the company. He is to continue carrying out his duties until the new CEO is appointed. Meanwhile, RBC reports that Rostelecom First Vice President Vladimir Kirienko might become the new CEO of VK.
Dobrodeev’s departure follows the recent ownership change at MF Technologies, which is the controlling shareholder in VK (57% of votes). In particular, in a series of recently announced transactions, Gazprom-affiliated entities are to take over control in MF Technology from USM (see our VK (Mail.ru) – Will change of control lead to value unlock?, of 2 December). Thus, the departure of Dobrodeev, who worked for USM prior to joining VK and plans to return to USM now, looks logical.
116 RUSSIA Country Report January 2022 www.intellinews.com