Page 26 - bneMagazine March 2023 oil discount

26 I Companies & Markets bne March 2023
to national and international databases, in order to verify for example, whether an e-resident has been convicted
of a criminal act in any country's jurisdiction since obtaining e-residency, or if there are any another important circumstances which might require the invalidation of that e-resident's digital ID.
From January 2023, Estonian digital ID applicants face a new e-resident digital ID application environment, which allows the collection of more detailed information on a foreign citizen's background and intentions.
Oun said that a rise in e-residency application refusals and of annulments of existing digital IDs was evidence of this tightened-up screening process. Whereas in 2018, 2% of e-residency applications were rejected, that figure had risen to 8% as of last year.
As of January 23 this year, there were 63,074 valid Estonian e-resident cards in circulation. Since the programme was rolled out in 2014, 99,205 people have received e-resident status, ERR.ee said.
Russian social media giant VK prepares to move back to Russia
bne IntelliNews
Russian social networking site VK has announced
that its board of directors (BoD) has approved the possibility of re-domiciliation from the British Virgin Islands to Russia, the company reported on February 13.
The move is subject to the company meeting all relevant legal and regulatory requirements. If the re-domiciliation goes ahead, VK will become an International Public Company under Russian law. It is expected to improve the company’s operational efficiency, although there are no details as
yet regarding the timing or mechanics of the process, Renaissance Capital reported in a note.
The potential move should benefit local investors due to the reduced risks associated with a foreign domicile in the current geopolitical environment. It may also enable VK
VK – shareholder structure
Source: Company data, Renaissance Capital
www.bne.eu
to distribute cash, which is not unrealistic given recent asset sales that have reduced leverage and improved cash generation, Rencap said.
“It is unclear what options will be given to international shareholders, including those who cannot hold local stock. However, management is likely to be incentivised to enable conversion for all investors should the re-domiciliation and local listing take place,” Rencap added.
Overall, the potential re-domiciliation, combined with an increase in management’s economic interest and the stock’s undemanding valuation, increases the chances of VK shares’ re-rating in the near to medium term. On current estimates, VK trades on 3.7x EV/EBITDA 2023, Rencap reports.