Netherlands-based Yandex NV (NASDAQ:YNDX) has agreed to sell all of its assets in Russia to a group of Russian investors in a $5.2 billion deal. With this deal, the firm’s search engine, known as Yandex and dubbed “Russia’s Google,” will completely transition into Russian ownership, according to Reuters.
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The firm had introduced a slew of services ranging from search to ride booking, but Russia’s invasion of Ukraine nearly two years ago changed the narrative, as the country faced mounting sanctions and several big brand exits.
Since then, Russian authorities have been in talks to spin off the company’s Russian operations from its Dutch parent. Notably, the sale points to a mandatory fair valuation trim of at least 50% in transactions involving sales of foreign assets. At the same time, units generating over 95% of revenues for Yandex will remain in Putin’s Russia. Following the deal closure, Yandex NV will cease to use the Yandex brand.
However, Yandex NV will hold onto its units in cloud, data solutions, self-driving, and edtech. According to a Reuters report, Russian authorities have welcomed the M&A deal, underlining the importance of maintaining the assets as a Russian-owned entity.
What Is the Price Target for Yandex?
From a high of nearly $87 in November 2021, Yandex’s share price has plummeted to $15 amid the ongoing Russia-Ukraine conflict. While analyst coverage on Yandex remains sparse at present, the stock is currently priced at a price-to-earnings multiple of 17.9.
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