Under the terms of the deal, Sberbank, as its corporate website reports, has bought out a 25%+1 stake in Yandex.Money for a consideration of RUR 2.4 bln ($33.8 mio) at a substantial discount to the market value as the deal was closed at the price according to the shareholder agreement Sberbank and Yandex signed in 2013.
Yandex.Market B.V., which operates in Russia under the brands Yandex.Market, Beru, Superchek, etc., is being handed over in its entirety to Yandex. The value of the transaction is RUR 42 bln ($592 mio). The aggregate pre-tax profit of the deal for Sberbank has reached around RUR 20 bln.
Herman Gref, CEO of Sberbank, 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.
Yandex.Money e-payment service will keep operating in the ordinary course of business. Until the end of the year Yandex.Money is set to do a rebrand and approve its development strategy.
Yandex.Money is a leading e-payments service in Russia. Holding a leading position across B2B and B2C segments, Yandex.Money’s e-wallet is utilized by 54.7% online users in Russia, while Yandex.Checkout is used by 38% of Russian websites. 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 RUR 502.7 bln, while its EBITDA saw a 16-fold increase to rise to RUR 2.9 bln. The company’s net profit in 2019 stood at RUR 1.9 bln ($26.7 mio), and its net assets were worth RUR 6.9 bln as of December 31, 2019. The company’s own funds in its accounts exceeded RUR 6 bln.