Yandex has confirmed the media reports on negotiations with TCS Group Holding PLC (Tinkoff) for the purchase of 100% of TCS Group's share capital.
The parties entered into an essential agreement on the transaction. It implies remuneration in the form of cash and Yandex shares for a total amount of $5.48 billion, $27.64 per Tinkoff share. This, proceeding from what Yandex shares cost at close on September 21, 2020, implies a premium of 8% to Tinkoff's GDR closing price on September 21, 2020 ($25.60), 10.4% to the weighted average closing price of Tinkoff's GDRs for the 1-month period ending on September 21, 2020 ($25.04), 16.9% to the weighted average closing price of Tinkoff's GDRs for the 3-month period ending on September 21, 2020 ($23.65).
The transaction is subject to approval by the holders of Yandex class A shares and the shareholders at their general meeting.
Tinkoff Bank (previously Khimmashbank) acquired in 2006 by Russian entrepreneur Oleg Tinkov is one of the large Russian banks. The bank specializes in consumer lending to individuals, mainly through credit cards, and providing a wide range of financial services based on the bank's own online platform.
