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Sberbank (SBER)
24-Jun-2020 / 00:22 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Sberbank has decided to accept Yandex's offer regarding sale of Yandex.Market stake and will consolidate 100% of shares in Yandex.Money
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 operates in Russia under the following brands: Yandex.Market, Beru, Superchek and others.
The value of the transaction is RUB42 bn. The aggregate profit of the deal for Sberbank is expected to reach around RUB20 bn, with the final figure to be determined at the closing of the transaction.
On top of that, Sberbank is buying Yandex's shareholding stake (25% + RUB1) in Yandex.Money and will rebrand the latter until the end of 2020.
Sberbank is acquiring Yandex.Money's entire stake for a consideration of approximately RUB2.4 bn at a substantial discount to the market value as the deal will be closed at the price according to 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 in ordinary course of business.
Yandex.Money is a leading e-payments service in Russia. Holding a leading 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 bn, while its EBITDA saw a 16-fold increase to rise to RUB2.9 bn. The company's net profit in 2019 stood at RUB1.9 bn and its net assets were worth RUB6.9 bn as of December 31, 2019. The company's own funds in its accounts exceeded RUB6 bn.
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 getting 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 agreement 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 marketplace 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 bn. 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."
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Sberbank
Elena Egorova
Press office
Tel.: +7 495 957 5721
media@sberbank.ru
Sberbank is Russia's largest bank and a leading global financial institution. Sberbank holds almost one-third of aggregate Russian banking sector assets, it is the key lender to the national economy and the biggest deposit taker in Russia. The Government of the Russian Federation represented by the Ministry of Finance of the Russian Federation is the principal shareholder of Sberbank owning 50% plus one voting share of the bank's authorized capital, with the remaining 50% minus one share held by domestic and international investors. Sberbank has customers in 18 countries. Sberbank has the largest distribution network in Russia with about 14,000 branches, while its international operations - subsidiary banks, branches, and chapters - include the UK, US, CIS, Central and Eastern Europe, India, China, and other countries.
The bank holds general banking license No. 1481 issued by the Bank of Russia.
Official websites of the Bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.
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