Yandex says management change needed to maintain business, prices

MOSCOW, Nov 19 (PRIME) -- Business and the share price of Internet company Yandex would be hurt, if it does not change its corporate management strategy, it said in the materials for the shareholders late on Monday.

“If the offered restructuring is not approved, the proposed changes in Russian legislation can have a significant negative effect on our business and (or) the long-term interests of the shareholders, and also on the assessment of the share price of our A class shares,” Yandex said.

Yandex announced a plan to restructure its corporate management by establishing a public interests foundation that will receive a golden share in Yandex from Sberbank. Media linked the change to a draft law submitted to the State Duma, parliament’s lower chamber, prohibiting foreign companies from holding more than 20% in significant information resources in the Russian segment of the Internet.

Sberbank will consider giving the share on Tuesday, and Yandex can approve its changes at an extraordinary general meeting on December 20.

Yandex also said that the restructuring can lead to trade volatility and a decrease of the A class shares prices, harm Yandex’ reputation and its neutrality principle.

According to Yandex, a special committee of the company discussed delisting from Nasdaq, a change of jurisdiction and issuance of a new golden share due to the geopolitical events.

End