Russia’s Google Yandex in talks to buy online lender Tinkoff for $5.5 billion

Yandex, widely known as the Google of Russia said on Tuesday that the company was looking to purchase the world's largest online bank Tinkoff at a $5.5 billion buyout deal

by Sourav D
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Russia’s Google Yandex in talks to buy online lender Tinkoff for $5.5 billion

Yandex, the Moscow-based Russian internet services provider, widely known as the “Russian version of Google,” had been in an advanced stage talk to purchase the world’s largest online bank Tinkoff at a $5.48 billion cash-and-stock deal, Tinkoff-owner TCS Group Holdings, one of the largest bank in Russia alongside Yandex had said in a joint statement on Tuesday, eventually skyrocketing the Nasdaq-listed Yandex shares’ prices by as much as 11.80 per cent.

The 20-year-old internet service provider, Yandex, had wrapped up the day just a notch shy of 12 per cent to $66.06 apiece in New York Stock Exchange.

Yandex to purchase Tinkoff at $27.64 per share

In point of fact, the concept of a potential merger between Yandex and Tinkoff came into being later last year, when the TCS group founder Oleg Tinkov had suggested Yandex’s Chief Executive to combine the entities, while the latest $5.5 billion buyout deal for the world’s No.

1 online bank Tinkoff would represent a premium of 8 per cent over TinKoff’s GDR price as of September 21. Meanwhile, as a press agency report had quoted one of the banking sources familiar with the subject-matter as saying that a 50 per cent pay off of the takeover deal was expected to be paid in cash and the remaining would be paid through Yandex shares, the Moscow-based internet services provider said, “The parties have come to an agreement in principle on a transaction that would consist of cash and share consideration worth approximately $5.48 billion or $27.64 per Tinkoff share.

” Nevertheless, the Tinkoff founder Tinkov, who has currently been in London to seek treatment for acute leukaemia following a bone marrow transplantation that was conducted on July this year, was quoted saying to the reporters in a conference call that Tinkov, owner of the world’s largest online lender having a customer-base of roughly 10 million people across the transcontinental country, would stay with the company following its merger with Yandex.

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