Yandex to buy Uber’s share in foodtech, delivery JVs for $1 bln

MOSCOW, Aug 31 (PRIME) -- Russian Internet company Yandex has signed a binding agreement to acquire U.S. ride-hailing company Uber’s interest in the food-tech, delivery, and self-driving businesses the companies developed together for U.S. $1 billion, Yandex said on Tuesday in a statement.

Under the agreement, Yandex will get Uber’s 33.5% indirect interest in Yandex.Eats, Yandex.Lavka, and Yandex.Delivery, giving the Internet company 100% ownership in all three businesses; Uber’s 18.2% interest in Yandex Self-Driving Group (SDG), giving Yandex 100% ownership in the business; and an additional 4.5% interest in the newly restructured MLU B.V. which will focus on mobility businesses, giving Yandex and its employees a total of approximately 71% ownership in the joint venture.

The 71% share includes 68.3% ownership of Yandex and management in the joint venture and 2.8% reserved for the employee equity incentive program of MLU.

The deal will be done in two stages – the acquisition of 4.5% of MLU and 18.2% in SDG, to be closed by the end of September and the demerger of Yandex.Eats, Yandex.Lavka, and Yandex.Delivery from MLU and subsequent acquisition of Uber’s interest in these businesses, to be completed by the end of 2021.

The newly restructured MLU will continue to focus on mobility businesses, including ride-hailing and car-sharing.

Yandex will also get an extension of the current license for the exclusive right to use the Uber brand in Russia and certain other countries until August 2030, assuming exercise of the option.

Yandex also gets a two-year American call option to acquire the remaining 29% of Uber’s interest in the newly restructured MLU at a strike price of $1.8 billion, subject to agreed increases over the option period – going up to about $2 billion if exercised in September 2023.

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