Yandex to Acquire Its Moscow Headquarters
February 19 2016 - 8:07AM
Yandex (NASDAQ:YNDX), one of the largest European internet
companies and the leading search provider in Russia, today
announced that it has entered into an agreement, pursuant to which
it will become the sole owner of a newly-created company which will
hold title to the office complex in central Moscow that houses the
Yandex group’s Russian headquarters. The complex is spread across
approximately 4 hectares and includes 7 buildings with around
80,000 square-meters of Class A and B office space, 65% of which is
currently occupied by the Yandex group. Yandex will continue to
lease a portion of the space to third-party tenants in the
medium-term, while securing access to additional space for
long-term growth as the Yandex group expands.
Yandex has entered into a Framework Agreement with Krasnaya Roza
1875 Limited, a Cypriot company (“KR1875”), pursuant to which
Yandex will issue 12,900,000 new Class A ordinary shares to KR1875
in exchange for a 100% interest in a newly-created company that
will hold title to the office complex and that will have
approximately USD 490 million of debt at closing. KR1875 has
agreed to enter into a lock-up agreement in respect of these Yandex
shares for a period of 90 days from closing.
“We believe that this transaction is an effective use of capital
and a prudent approach to managing our operating expenses in the
current environment. It will improve our operating margins and will
be immediately accretive to our earnings per share upon closing in
the range of high-single digits,” comments Greg Abovsky, Chief
Financial Officer of Yandex. “In addition, the Company will
have a unique opportunity to create a high-tech campus right in the
heart of Moscow.”
The closing of the transaction remains subject to certain
conditions, including required regulatory approvals, and is
anticipated to occur in the second half of 2016.
Yandex is being advised by Sberbank CIB, the investment banking
division of Sberbank of Russia, acting as financial advisor, by
White & Case, Morgan Lewis and Van Doorne, acting as legal
advisors, and JLL, acting as real estate advisor in connection with
the acquisition.
Today management will hold a conference call and webcast at 8:30
a.m. U.S. Eastern Time (4:30 p.m. Moscow time, 1:30 p.m. London
time) to discuss the transaction.
Conference Call Details
Friday, February 19, 2016 |
8:30 a.m. U.S. Eastern Time (4:30 p.m. Moscow
time, 1:30 p.m. London time) |
Live Call |
US: 1877 280 1254 |
UK/International: +44(0)20 7136 2051 |
Russia: 8 800 500 9311 |
Passcode: 9144614 |
|
Replay
US: 1866 932 5017 |
UK/International: +44 (0)20 3427 0598 |
Russia: 810 800 2870 1012 |
Passcode: 9144614 |
|
Available until February 25, 2016
Webcast
http://edge.media-server.com/m/p/27rv623g
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that
involve risks and uncertainties. These include statements regarding
the anticipated closing of the transaction described above and the
impact of such transaction on the Company’s financial results.
Actual results may differ materially from the results predicted or
implied by such statements. The potential risks and uncertainties
that could cause actual results to differ from the results
predicted or implied by such statements include, among others, the
satisfaction of the conditions to closing and macroeconomic and
geopolitical developments affecting the Russian economy, as well as
those risks and uncertainties included under the captions "Risk
Factors" and "Operating and Financial Review and Prospects" in our
Annual Report on Form 20-F for the year ended December 31, 2014,
which is on file with the Securities and Exchange Commission and is
available on our investor relations website at
http://ir.yandex.com/sec.cfm and on the SEC website at
www.sec.gov. All information in this release and in the attachments
is as of February 19, 2016, and Yandex undertakes no duty to update
this information unless required by law.
Contact:
Investor Relations
Katya Zhukova
Phone: +7 495 974-3538
E-mail: askIR@yandex-team.ru
Media Relations
Vladimir Isaev, Ochir Mandzhikov
Phone: +7 495 739-7000
E-mail: pr@yandex-team.com
Yandex NV (NASDAQ:YNDX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Yandex NV (NASDAQ:YNDX)
Historical Stock Chart
From Jul 2023 to Jul 2024