Yandex, TCS Group Terminate Discussions on Acquisition

The deal on the purchase of TCS Group – the parent company of Tinkoff Bank – by Russian Internet giant Yandex will not happen, since the parties could not come to an agreement, according to the Group’s statement said on the London Stock Exchange, TASS reported.

“Following further discussions, including with Tinkoff’s controlling shareholder, the parties have agreed not to proceed with the Potential Transaction. Negotiations between the parties with respect to the Potential Transaction have therefore been terminated, effective immediately,” the statement said.

“Yandex regrets to confirm that it has not been able to agree definitive transaction terms with the core shareholders of Tinkoff, and accordingly that the parties have mutually agreed to terminate discussions regarding a possible offer by Yandex for 100% of the share capital of Tinkoff,” Yandex wrote in its press release.

Later, TCS Group representative, commenting on the termination of negotiations with Yandex, as well as information about possible negotiations on the sale of the bank to MTS, said that Tinkoff would develop independently. “We are not negotiating with anyone, Tinkoff will develop independently in the future,” the company’s representative told TASS.

Right after the news, global depository receipts (GDRs) of TCS Group on the Moscow Exchange fell by 7.1% to 1,754.8 rubles ($22.44) per share. Meanwhile, shares of Russian Internet giant Yandex fell by 4.1% and reached 4,560.2 rubles ($58.33) per share on the Moscow Exchange.