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Technology

Technology

Yandex’s restructuring deal expected to be delayed to next year

File photo: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina/File photo
File photo: The logo of Russian technology giant Yandex is on display at the company's headquar... File photo: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina/File photo
File photo: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina/File photo
File photo: The logo of Russian technology giant Yandex is on display at the company's headquar... File photo: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina/File photo

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The conclusion of the reorganization of Yandex (YNDX.O), a Russian technology firm that is listed on the Nasdaq, is anticipated to be delayed until the beginning of 2024, according to three individuals who are familiar with the discussions who spoke to Reuters on Monday.

Yandex, a technology company that is sometimes referred to as “Russia’s Google,” was one of the few Russian enterprises that had the potential to become a worldwide corporation until February 2022, when Moscow ordered soldiers into Ukraine.

Yandex and the Kremlin have been in discussions for more than a year about the possibility of separating Yandex’s Russian companies from Yandex NV. This Dutch corporation serves as Yandex’s parent company.

For some months, the Dutch holding company Yandex NV has been restructuring to guarantee that its companies would continue to have access to Western markets despite the sanctions imposed on Moscow due to the war in Ukraine.

The agreement was supposed to be completed in December when it was first anticipated. Every transaction must, in the end, have permission from both the shareholders and the government of Russia.

Regarding the process of reorganization, Yandex did not provide any comments. The firm intends to repay the money that its shareholders contributed successfully by selling its primary revenue-generating companies in Russia, such as its search and ride-hailing operations. Following that, it intends to build four other business lines on an international scale.

Even though the firm had made “great progress” and had given over all of the paperwork to the attorneys, it was unclear whether or not the job would be finished this month, according to one of the people who spoke on the condition of anonymity because the material is not generally available.

A further source stated that the objective was to finalize the transaction during the first quarter, while a third source stated that it was anticipated to take place “at the beginning of 2024.”

On Monday, the Russian central bank registered the issuance of ordinary and preferred shares of a new business named MKAO Yandex. This new company is being established in Kaliningrad as part of the restructuring process.


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