At any point of the digital transition,…
Oleg Tinkov reported that the selling of his bank to Yandex had plummeted as a result of Yandex not having to purchase Tinkoff Bank at its price and offering a lower rate. The businessman reported a few months ago that his bank was not being offered to anyone, but Yandex verified that Tinkov had made such a bid to Arkady Volozh directly.
It’s just a matter of money,
The real explanation for the failure of the purchasing transaction by Yandex of Tinkoff Bank has been known. The transaction did not take place, according to Oleg Tinkov, the bank’s owner, because the parties could not agree on an offer.
Oleg Tinkov said he called for $6.2 billion for his bank in the Hard Day’s Night program on the Dozhd TV channel, but Yandex did not commit to this number. Exactly $6 billion was offered by the Internet giant, that is, according to the businessman, because of the $200 million the deal fell through.
“For one reason, all deals fall apart – little money. We didn’t approve. There was a gap of $200 million in the run. In their place, I would have paid, but they have their own considerations,’ said the businessman.
Oleg Tinkov explained that he decided to take part in the management of this company after the selling of his bank. He also claimed that Yandex had promised to pay him half the value of his stock and that his ability to engage in the management of the bank after the sale was decided by the fact that he was willing to sell the securities within 18 months.
“I said that if you give me those shares, a “affected” asset in any way, I want to take part in management. How do I possess something that doesn’t depend on me? “Oleg Tinkov said. Yandex did not support the businessman’s proposal to participate in business, according to Forbes.
In late September 2020, Yandex announced the purchase of Tinkoff Bank. Its amount was significantly lower at that time than what Oleg Tinkov had named – $5.45 billion. Then it became known that through their own shares, Yandex really needed to pay part of this sum.
In 2006, Oleg Tinkov founded Tinkoff Bank. The complete absence of physical branches is its main feature – they are completely replaced by remote services.
The bank is sold, not sold, and
Initially, several other reasons for the failure of the deal were mentioned by Oleg Tinkov. Thus, in a letter published by The Bell to his staff, he wrote that parties began negotiations with a merger, seeking synergies and rapidly growing their customer base, attempting to establish Russia’s largest private company.
Actually, everything had turned into a sale, they were just trying to buy Tinkoff, with all the negative consequences for us that followed. Tinkoff”Tinkoff” I was convinced once again during the transaction, reading comments on social media, that we have the best customer service in the country. I was incredibly shocked that there is such a hostile attitude towards the Yandex brand, and its customers do not like it, since they are in a more consumer-friendly market category, unlike us,’ says the letter from the businessman.
The text of another letter was later published by The Bell, this time written by Yandex Managing Director Tigran Khudaverdyan to his own workers. It follows that Oleg Tinkov personally offered to purchase Tinkoff Bank from the founder of the IT giant, Arkady Volozh. This idea came almost immediately after the conclusion of Yandex and Sberbank’s long-term relationship.
“For several years, Oleg has been attempting to sell his bank, and here Yandex has already got rid of the non-competitive deal with Sberbank (undercode comment). For us, it was an interesting opportunity to merge with a rather big bank that we have several joint projects with. “Tigran Khudaverdyan said in his letter, “The Tinkoff team will be a partner in Yandex and would obtain independence in market growth and all the possibilities of our ecosystem.
We have consistently met Oleg halfway through his additional requirements. And, of course, we agreed that Oleg would take part in the administration of the bank after the deal and help Yandex as a whole. Unfortunately, more and more new requirements have arisen after each stage of the negotiations. “Therefore, when we learned today that Oleg had made the decision to withdraw from the deal, we were not surprised,” concluded the IT company’s managing director.
Why Yandex failed to purchase Tinkoff Bank
Yandex reported that, at the end of September 2020, it had entered into an agreement in principle to acquire TCS Group, which is owned by Tinkoff Bank. The deal was expected to be worth $5.45 billion, and Yandex intended to pay partly in cash and partly in its own shares for the acquisition.
The Internet giant was supposed to buy 100 percent of TCS Group’s shares, of which Oleg Tinkov himself is the biggest shareholder. He owned 40 percent of the group’s shares at the time of the deal, while the remainder remained on the London Stock Exchange free float (LSE).
On October 16, 2020, the collapse of the contract became public. Yandex regretfully acknowledged that the company was unable to agree to the terms of the agreement offered by the TCS group’s key shareholders. In December 2020, Oleg Tinkov sold a bundle of global depositary receipts to TCS Group, which accounts for around 5.3 percent of its shares, after a failed agreement with an IT company.
The valuation of the shares amounted to $ 325 million. RBC writes that the banker clarified his decision, among other factors, on personal grounds. The funds collected as part of the sale will be used to start the Tinkov family’s charitable foundation, aimed at solving the problems of blood cancer and establishing a donation institution on which I intend to invest up to $ 200 million. In addition, I will use part of the funds raised to solve personal legal problems. , – said Oleg Tinkov.