Report: Yandex said mulling to buy out Uber’s stake in JV, not IPO

MOSCOW, Jun 11 (PRIME) -- Russian tech company Yandex is considering buying Uber Technologies’s stake in their joint ride-hailing unit instead of seeking an initial public offering (IPO) of the division, Bloomberg reported on Thursday, quoting two people familiar with the matter.

The company that operates Russia’s largest Internet-search engine and ride-hailing service wants to buy all of Uber’s 38% stake in Yandex.Taxi, said the people, who asked not to be named as the discussions are confidential.

Uber valued its stake in the joint venture at U.S. $1.24 billion as of March 31. After February 2021, any transfer of the joint venture is subject to a right of first refusal in favor of Yandex, according to Uber.

A spokesman for Yandex said the company is constantly reviewing different options to restructure ownership in its joint ventures and is open to discussions on this issue. A spokesperson for Uber declined to comment.

Deliberations are at an early stage and may not lead to a transaction and Yandex could still pursue an IPO for the business in the future, the people said.

The coronavirus pandemic has battered the taxi market, sending Uber and Lyft shares down and putting pressure on the valuation of other ride-hailing firms looking at IPOs. Against this backdrop, Yandex is looking at restructuring the venture given that its car-sharing business, currently not part of the Uber joint venture, may complement its taxi service, one of the people said.

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