June 8 (Reuters) – Russian internet company Yandex (YNDX.O) said on Thursday it had been cleared to keep its Nasdaq Stock Exchange listing, provided it completes the restructuring and divestment of its Russian operations by the end of 2023.
Yandex, often referred to as “Russia’s Google,” is moving forward with a corporate restructuring plan that should see it divest ownership and control of core Russian-based businesses in what could be one of Russia’s most significant business deals this year. are.
Russian billionaires, including Vladimir Potanin, CEO and largest shareholder of metal giant Nornickel (GMKN.MM), and Vagit Alekperov, co-founder and major shareholder of oil giant Lukoil (LKOH.MM), are among the bidders for assets eventually valued at around $14 billion, three people familiar with the case told Reuters last month.
Given the Kremlin’s measures requiring foreign companies leaving Russia to sell their assets at a 50% discount, shareholders of Yandex’s Dutch-registered holding company Yandex NV, most of whom are Western investment funds, would end up with about $7 billion. can earn from a full divestment.
Yandex, which has confirmed it has received proposals from a number of investors, said the Nasdaq hearing panel notified it of the decision to keep its listing on June 6.
“(The decision is) subject to certain conditions regarding the timing and implementation of Yandex’s proposed corporate restructuring, including the divestiture of ownership and control of some of our core businesses, including all Russia-based businesses, by the end of 2023,” it said.
A trading freeze, implemented on February 28, 2022, remains in effect, Yandex said. Moscow-listed shares were up 2.5% as of 0823 GMT, outperforming the broader market.
Russian e-commerce company Ozon (OZON.O)’s appeal against the delisting was rejected by Nasdaq, Ozon said late Wednesday. Trading in Ozon’s American Certificates (ADRs) would be suspended Thursday, the company said, but the listing will not be delisted until the appeals process is completed. It intends to request a review of the decision.
Recruiter Headhunter (HHR.O) and payment service provider Qiwi (QIWI.O) also appealed the delisting decisions in March.
Reporting by Alexander Marrow; edited by Jason Neely and Emelia Sithole-Matarise