Yandex will give away shares in exchange for the Krasnaya Roza business center: it’s unprofitable for a company to rent a headquarters in Moscow
On the street of Leo Tolstoy, not far from the Park Kultury metro station, in the Krasnaya Roza business center is located the Moscow headquarters of the Internet company Yandex .
Previously, the company rented a room. However, the lease agreement was concluded in dollars, and she was losing money due to the devaluation.
Now Yandex has concluded an agreement with the owner of the business center - the Cyprus company Krasnaya Roza 1875 Limited ( KR1875 ). Under the agreement, a new company will be created, which will own the office complex. Yandex will be a full-fledged owner of a new legal entity.
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In addition to buildings, Yandex will receive a financial burden in the form of debt to Sberbank in the amount of about $ 490 million.
In addition, Yandex will issue 12.9 million Class A ordinary shares to the name of Red Rose 1875 Limited, with a 90-day sale restriction. At the time of publication, such a number of Yandex shares on the NASDAQ cost $ 168.732 million.
Parties are awaiting regulatory approval. They plan to close the deal in the second half of 2016. The financial adviser to Yandex on the transaction is Sberbank CIB, an investment banking company owned by Sberbank of Russia. White & Case, Morgan Lewis and Van Doorne were involved as legal advisors. The consultant for the real estate transaction is JLL, CNews reports .
The business center "Red Rose" includes seven office buildings of classes "A" and "B" with a total area of about 80 thousand square meters, located on an area of 4 hectares in the center of Moscow. Yandex now occupies 65% of the office space in the business center. The rest of the company will take the premises to the current landlords. However, in the future, Yandex plans to occupy 100% of the territory of the business center.
“We consider the deal to be an efficient use of the company's capital and the result of a reasonable approach to managing operating expenses in the current environment. The deal will improve the profitability of the business and get immediately after the closing of the transaction additional earnings per share - as a percentage, it will be expressed in dozens of top numbers, RBC cites the words of the financial director of Yandex, Greg Abovski.
In addition, according to him, Yandex will have a unique opportunity to create a high-tech campus right in the center of Moscow.
The agreement is still a framework.
Previously, the company rented a room. However, the lease agreement was concluded in dollars, and she was losing money due to the devaluation.
Now Yandex has concluded an agreement with the owner of the business center - the Cyprus company Krasnaya Roza 1875 Limited ( KR1875 ). Under the agreement, a new company will be created, which will own the office complex. Yandex will be a full-fledged owner of a new legal entity.
')
In addition to buildings, Yandex will receive a financial burden in the form of debt to Sberbank in the amount of about $ 490 million.
In addition, Yandex will issue 12.9 million Class A ordinary shares to the name of Red Rose 1875 Limited, with a 90-day sale restriction. At the time of publication, such a number of Yandex shares on the NASDAQ cost $ 168.732 million.
Parties are awaiting regulatory approval. They plan to close the deal in the second half of 2016. The financial adviser to Yandex on the transaction is Sberbank CIB, an investment banking company owned by Sberbank of Russia. White & Case, Morgan Lewis and Van Doorne were involved as legal advisors. The consultant for the real estate transaction is JLL, CNews reports .
The business center "Red Rose" includes seven office buildings of classes "A" and "B" with a total area of about 80 thousand square meters, located on an area of 4 hectares in the center of Moscow. Yandex now occupies 65% of the office space in the business center. The rest of the company will take the premises to the current landlords. However, in the future, Yandex plans to occupy 100% of the territory of the business center.
“We consider the deal to be an efficient use of the company's capital and the result of a reasonable approach to managing operating expenses in the current environment. The deal will improve the profitability of the business and get immediately after the closing of the transaction additional earnings per share - as a percentage, it will be expressed in dozens of top numbers, RBC cites the words of the financial director of Yandex, Greg Abovski.
In addition, according to him, Yandex will have a unique opportunity to create a high-tech campus right in the center of Moscow.
The agreement is still a framework.
Source: https://habr.com/ru/post/298802/
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