Summary
Uber Technologies, Inc. (UBER) has entered into a Framework Agreement with Yandex N.V. to restructure their joint ventures, MLU B.V. and Yandex Self-Driving Group B.V. (SDG). As part of this agreement, Uber will sell its entire 18.2% stake in SDG and a portion of its equity interest in MLU to Yandex. Additionally, Yandex.Eats, Yandex.Lavka, and Yandex.Delivery businesses will be spun off from MLU, with Yandex acquiring Uber's interest in these divested entities. The total cash consideration Uber will receive for these transactions is $1 billion, with $800 million to be paid at the initial closing and the remaining $200 million at a later closing. Uber has also granted Yandex a call option to acquire its remaining 29% equity interest in the restructured MLU within two years, with the exercise price potentially reaching $1.93 billion plus interest depending on the timing. These transactions, approved by both companies' boards, are expected to close in Q3 and Q4 2021 and are not subject to shareholder or regulatory approvals, though Yandex's Class A shareholders might need to approve the call option exercise.
Key Highlights
- 1Uber enters agreement to restructure joint ventures with Yandex.
- 2Uber to sell its entire stake in Yandex Self-Driving Group (SDG) and a portion of its stake in MLU.
- 3Yandex.Eats, Yandex.Lavka, and Yandex.Delivery businesses to be spun off from MLU; Yandex will acquire Uber's interest.
- 4Uber to receive total cash consideration of $1 billion for the divestitures.
- 5An initial $800 million payment is expected at the initial closing, with the remaining $200 million at a later closing.
- 6Uber granted Yandex a call option to acquire its remaining 29% stake in MLU for up to $1.93 billion plus interest.
- 7Transactions are expected to close in Q3 and Q4 2021 and do not require shareholder or regulatory approval.