Sberbank decides to accept Yandex’s offer regarding sale of Yandex.Market stake and will consolidate 100% of shares in Yandex.Money

Jun 23, 2020

June 23, 2020, Moscow — In a move to develop its ecosystem further Sberbank has decided to sell Yandex a 45% stake in Yandex.Market B.V., which is known in Russia as Yandex.Market, Beru, Superchek, and other brands.

The value of the transaction is RUB42 bln. The aggregate profit the deal will generate for Sberbank is expected to reach about RUB20 bln, with the final figure to be determined at the closing of the transaction.

On top of that, Sberbank is buying Yandex’s shareholding (25% + RUB1) in Yandex.Money and will rebrand the latter until the end of 2020.

Sberbank is acquiring Yandex.Money’s entire share for a consideration of approximately RUB2.4 bln at a substantial discount to the market value as the deal will be closed at the price following from the shareholder agreement Sberbank and Yandex signed in 2013. The final price will depend on the US dollar exchange rate ahead of the deal’s closing and its date.

Once the deal gets closed, Sberbank will have 100% ownership in Yandex.Money.

All Yandex.Money services will keep operating routinely.

Yandex.Money is a leading e-payments service in Russia. Holding a dominant position across B2B and B2C segments, its e-wallet is utilized by 53% online users in Russia (Mediascope, 2019), while Yandex.Checkout is used by 38% of Russian websites (MARC, 2019).

Yandex.Money’s business enjoyed a several-fold increase after Sberbank acquired its controlling interest. In 2019, the company’s turnover soared 13 times to reach RUB502.7 bln, while its EBITDA saw a 16-fold increase to rise to RUB2.9 bln. The company’s net profit in 2019 stood at RUB1.9 bln and its net assets were worth RUB6.9 bln as of December 31, 2019. The company's own funds in its accounts exceeded RUB6 bln.

Lev Khasis, First Deputy Chairman of the Executive Board, Sberbank:

“We welcome the signing of agreements with Yandex. We informed the market participants about a possible reorganization of the businesses run jointly with Yandex during the annual meeting with investors back in 2019. As competition between the Sberbank and Yandex ecosystems was growing stronger, we were looking for a way out that would be mutually acceptable, and we have succeeded in finding a balanced solution together with Yandex’s top executives. We plan on staying partners with Yandex across multiple areas covered by our commercial agreements.”

The parties have signed legally binding paperwork covering the deal that is expected to be closed in 3Q20 once all regulatory approvals are obtained.

Herman Gref remains a member of the Yandex Board of Directors until Yandex holds its shareholder meeting where a new Yandex BoD will be elected. However, he does not intend to be part of Yandex’s governance board in the future.

Lev Khasis, First Deputy Chairman of the Executive Board, Sberbank:

“We are grateful to our fellow partners from Yandex for the joint work and pro-active introduction of the best practices of our companies. Together, we were able to create the Beru market place in a short time from scratch and ensure its rapid development in the highly competitive Russian e-commerce market. The daily audience of Beru now exceeds one million people and its monthly turnover is already nearing RUB4 bln. Building an ecosystem is a live process and this transaction opens up completely new opportunities in the development of e-commerce for us, while also removing some restrictions arising from our previous agreements with Yandex.”