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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  TCS Group Holding PLC    TCS


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Russia's Yandex in talks to buy online bank Tinkoff for $5.5 billion

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09/22/2020 | 09:51pm EDT
FILE PHOTO: The logo of Tinkoff Bank

Russian bank TCS Group Holding is in talks to sell its online bank Tinkoff to Russian internet group Yandex for $5.48 billion (£4.30 billion), the two companies said on Tuesday.

The idea was first publicly floated last year when Oleg Tinkov, founder of Russia's TCS group, suggested https://uk.reuters.com/article/idUKL8N23E2JS to Yandex's chief executive that they combine his bank with Yandex, known as Russia's answer to Google.

"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.

The price represents an 8% premium to Tinkoff's GDR price as of Sept. 21. One half of the deal is expected to be paid in cash and another half with Yandex shares, a banking source and a source familiar with the matter, told Reuters.

Tinkoff is the world's largest bank that is fully online, with more than 10 million customers across Russia.

Its founder, Tinkov has been battling acute leukaemia and had a bone marrow transplant in July. He stepped down as board chairman of the bank to focus on his health and transferred his TCS shares to a Tinkov family trust in the spring.

Tinkov, who is in London to see his doctor, told Reuters by phone that he would stay with the company after its merger with Yandex.

However, he also said he had already achieved all he wanted on the financial market and it was time to do something else, such as create a charity foundation to combat leukaemia.

The possible deal was announced a few months after Yandex said it was terminating its partnership with Sberbank, which opened the door for Yandex to compete with the country's largest bank.

The deal will give Yandex potential synergies in data and products, but also exposes it to banking risks, which means it is crucial to retain the TCS management team, Maria Sukhanova, an analyst at BCS brokerage, said.

Sukhanova said Yandex would have to take on more debt or issue new shares to pay for the deal.

(Reporting by Tatiana Voronova, Alexander Marrow and Nadezhda Tsydenova; Writing by Andrey Ostroukh and Polina Devitt; Editing by David Goodman/David Evans/Tom Brown/Jane Merriman)

By Polina Devitt and Tatiana Voronova

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 1.64% 1632.98 Delayed Quote.21.92%
SBERBANK OF RUSSIA 2.42% 214.15 End-of-day quote.-15.94%
TCS GROUP HOLDING PLC 1.70% 23.9 Delayed Quote.11.16%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.00% 76.101 Delayed Quote.23.70%
YANDEX 1.93% 59.12 Delayed Quote.35.94%
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07:15aTCS GROUP HOLDING PLC : Notification of Q3 2020 IFRS Results and Conference Call
10/16Russia's Yandex and TCS terminate $5.48 billion Tinkoff talks
10/16TCS GROUP HOLDING PLC : Statement regarding termination of discussions
10/09TCS : Tinkoff launches financial messenger built into its super app
09/29TCS : Statement on Tinkoff Bank's RAS Financial Highlights for January - August ..
09/24EXCLUSIVE : Kazakhstan's Kaspi may revive London float after Tinkoff deal- sourc..
09/23Tinkoff founder pledges to keep grip on bank amid plans for sale to Yandex
09/22Russia's Yandex in talks to buy online bank Tinkoff for $5.5 billion
09/22TCS GROUP HOLDING PLC : Statement regarding media speculation
09/17TCS : Tinkoff ranks among the Brand Finance Russia Top 50 most valuable brands
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Financials (USD)
Sales 2020 1 436 M - -
Net income 2020 446 M - -
Net Debt 2020 - - -
P/E ratio 2020 10,4x
Yield 2020 2,69%
Capitalization 4 613 M 4 613 M -
Capi. / Sales 2020 3,21x
Capi. / Sales 2021 2,90x
Nbr of Employees 26 780
Free-Float 18,5%
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