Tinkoff online bank whose parent company is Russian Bank TCS Group is about to get sold to Yandex, Russian Internet Group for the cost of $5.48 billion. This is announced and accepted by both of the companies.
There was a rumor in initial days among the public during the previous year when the founder of Russia’s TCS Group, Oleg Tinkov, suggested to the chief executive of Yandex that they must combine their bank with Yandex.
“Both the parties have come to a contract in belief on a deal that would contain cash and share consideration worth around $5.48 billion or $27.64 per Tinkoff share,” Yandex said.
The price signifies an 8% premium to Tinkoff’s GDR price as of Sept. 21. One half of the deal is probable to be rewarded in cash and added half with Yandex shares, a banking basis, and a source familiar with the matter told Reuters.
Tinkoff Bank, previously Tinkoff Credit Systems is a Russian commercial bank based in Moscow and created by Oleg Tinkov in 2006. The bank does not have divisions and is considered a Neobank. Tinkoff is the world’s major bank that is entirely online, with more than 10 million customers across Russia. The Tinkoff monetary system bids a full range of financial and lifestyle facilities for persons and industries via its mobile app and web interface.
Yandex is a technology corporation that builds intelligent products and facilities driven by machine learning. They aim to aid customers and industries better circumnavigate the online and offline world. Since 1997, they have delivered the best quality information services. Moreover, they have advanced market-leading on-demand conveyance services, steering products, and other mobile applications for millions of customers all over the world.
Its creator, Tinkov, has been fighting acute leukemia and had a bone marrow transplanting in July. He walked down as board chairman of the bank to emphasis on his fitness and transported his TCS shares to a Tinkov personal trust in the spring.
Tinkov, who is in London to meet his doctor, told Reuters by phone that he would remain with the company after its union with Yandex.
Nevertheless, he also said he had already attained all he wanted on the monetary market, and it was time to do something different, such as create a charity foundation to battle leukemia.
The conceivable contract was declared a few months after Yandex said it was dismissing its corporation with Sberbank, which unlocked the door for Yandex to contest with the country’s largest bank.
The deal will give Yandex potential collaborations in data and products, but also leaks it to banking risks, which means it is vital to retain the TCS organization team, Maria Sukhanova, a specialist at BCS brokerage, said.
Sukhanova stated that Yandex would have to take on more debt or issue new shares to repay for the deal.