(Adds details, quotes, context)
MOSCOW, Sept 22 (Reuters) - Russian bank TCS Group Holding
is in talks to sell its online bank Tinkoff
to Russian Internet giant Yandex for $5.48 billion, the
two companies said on Tuesday.
The idea of integration between the two industry leaders was
first publicly floated in June 2019 when Oleg Tinkov, the main
shareholder of Russia's TCS group, told https://uk.reuters.com/article/idUKL8N23E2JS
Yandex Chief Executive their companies together would be worth
more than $20 billion.
"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...," Yandex said.
TCS Group said it confirmed it was in talks on a possible
offer by Yandex.
One half of the deal is expected to be paid by cash and
another half with Yandex shares, Vedomosti newspaper reported,
citing an unnamed source.
The possible deal was announced a few months after Yandex
said it was terminating its partnership with Sberbank,
Russia's largest lender.
On the Moscow Exchange, TCS Group GDRs rose 6.4% on the day
after the deal announcement, while shares in Yandex were up 4%
on the day, outperforming the broader MOEX index that
ended the day 0.7% higher.
The transaction would be subject to the approval of Yandex's
shareholders, Yandex said.
"A further announcement will be made if and when
appropriate," TCS said.
(Reporting by Polina Devitt and Nadezhda Tsydenova; Writing by
Andrey Ostroukh and Polina Devitt; Editing by David Goodman and
David Evans)