Page 115 - RusRPTDec23

9.2.6 Agriculture corporate news 9.2.7 TMT corporate news
● Yandex
Yandex N.V., a Dutch parent company of Russian Internet company Yandex, may see all its Russian assets at once instead of a controlling stake, Reuters reported late on November 14 quoting three people close to the matter. “With a Dubai board meeting scheduled in late November, the parties involved are hoping to reach an agreement in December, the people said. Any deal ultimately requires approval from shareholders and Russia’s government,” Reuters said. Yandex did not comment on the matter. One of the sources said that Yandex N.V. may sell 100% of a holding firm established in Russia’s Kaliningrad Region. Another source added that the complete exist was quite likely yet not decided. One of the sources estimated the total value of the deal at 560bn rubles after a 50% discount demanded by the government had been considered.
Investors have shown limited enthusiasm for Yandex's strong financial results for the period spanning July to September, as they anxiously await news regarding the internet company's restructuring, according to analysts, Prime reports on November 7.
Sinara Investment Bank's Senior Analyst, Konstantin Belov, characterized the results as robust, surpassing expectations in terms of revenue and adjusted EBITDA. Yandex reported a remarkable 54% year-on-year increase in total revenue, reaching 204.8 billion rubles. Total adjusted EBITDA also grew by 33% to 26.5 billion rubles, though the adjusted EBITDA margin contracted by 2 percentage points to 13%.
However, the market seemed discouraged by an 83% decline in net income to 7.7 billion rubles, noted Leonid Delitsyn, an analyst at Investment Company Finam.
The primary focus of investor attention lies in Yandex's restructuring plans, the sale of a controlling stake in its Russian business to a consortium of strategic investors, and the potential conversion of Yandex N.V. shares into shares of the Russian firm consolidating business in the Russian Federation as part of the restructuring.
Yandex has obtained one of the required approvals from the government
115 RUSSIA Country Report December 2023 www.intellinews.com