Page 8 - bne_Tech_11_2018

Leaders
November 2018 www.intellinews.com I Page 8
Founder of Russian internet major Yandex says he will not sell out
IntelliNews Pro
Co-founder and the largest shareholder of inter- net major Yandex Arcady Volozh does not intend to sell his stake in Russia's most valuable digital company, Yandex said on October 22.
The announcement follows unconfirmed reports that Russia's largest bank state-controlled Sber- bank is staging a creeping takeover of Yandex. Risks of possible state control of Yandex scared investors, with its shares dropping by 24% in two days on NASDAQ and Moscow Exchange, cutting capitalisation from $11.8bn to $9bn.
Volozh controls 10.35% of the company's capi- tal and 49.2% of the voting rights, while other co-founders together with Volozh control 57% of the votes. Other large shareholders include com- pany's veteran Vladimir Ivanov (3.83% of capital and 6.23% of votes) and the US WMC (5.12% and 2.46%).
When Yandex listed on NASDAQ back in 2009, Sberbank acquired one of the priority, or so-called "golden shares," in Yandex, which gives it right
to veto any sale of more than 25% in Yandex. The deal was seen as guarantee that foreign investors could not control the company.
Sberbank is on the forefront of digital develop- ment in Russia and already works closely with Yandex on such projects as Yandex.Money, Yandex. Checkout and, most notably, "Russian Amazon" Yandex.Market online marketplace.
Lately Kremlin bureaucrats and security forces hawks have been calling for tighter state control over Yandex, annoyed by the fact that RuNet's largest search engine independently operates powerful media and information resources such as Yandex.Novosti and Yandex.Zen. Yandex was recently put under pressure by state-affiliated Gazprom-Media over piracy allegations.
In this situation Sberbank sees itself as a "white night" that could save Yandex from direct state control while at the same time reassuring the Kremlin and bringing additional investment, unnamed sources in the bank told Vedomosti.
Sources in Yandex claimed that any state lever- age over the company will negatively influence the Yandex team, many of which would simply leave. Yandex is considered to be one of the best companies in the country and run as a modern, independent and highly effective business.