Russia's Google Yandex Navigates Strategic Turn, Divests Russian Assets for Over $5B
Portfolio Pulse from Lekha Gupta
Yandex N.V. (NASDAQ:YNDX), a Dutch holding company, has agreed to sell its Russian and certain international businesses for approximately $5.21 billion. The sale, which is subject to a mandatory 50% discount as per Russian government regulations for foreign asset sales, includes the company's cash balance and Class A shares. The divestiture is expected to close in two phases in 2024, with Yandex planning to focus on four international business lines post-sale. This move comes after Yandex received a delisting notice from Nasdaq last year.
February 05, 2024 | 11:14 am
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Yandex N.V. is divesting its Russian and certain international businesses for about $5.21 billion, planning to focus on international growth post-sale.
The divestiture of Yandex's Russian and certain international businesses for a significant sum indicates a strategic shift towards focusing on international markets. This move could be seen positively by investors as it aims to unlock new growth potential outside of Russia, especially considering the mandatory discount imposed by the Russian government on foreign asset sales. The sale's completion and the focus on international business lines could potentially enhance Yandex's market position and investor sentiment, despite the backdrop of a Nasdaq delisting notice.
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