Yandex shares on the stock exchange have added to their value: preconditions for changes
According to the latest data, Yandex shares on the NASDAQ stock exchange have increased by 12.4%. The reason for this was the news about the reform of the company’s structure. At the moment, the price of securities is $40.2 per unit, and before that their price was at $35.8.
“Yandex recently announced that it is changing its strategy and expanding its structure. The management has made adjustments to the management apparatus and plans to create a Public Interest Fund. This organization will be of a non-commercial type and will receive a “golden share”. The Fund will be able to block the consolidation of 10% of the holding if they are in the hands of a single person.
News from “Yandex” served as a reason to review the bill, which was previously proposed in the State Duma. According to it, a foreigner cannot own more than 20% of shares of a large domestic Internet resource.
The creation of the Public Interest Fund was a decision that would satisfy the Russian authorities and the management of the holding company. Now the “golden share” from Sberbank will move to a new organization.
Arkady Volozh, the founder of Yandex, intends to create a family trust, which will contain his B-class securities. In addition, the company wants to cancel the option of automatic transfer of class B shares into class A shares. Usually this process was carried out after the death of the owner of the securities. Under the new rules, shares from the family trust will not change their class within two years after the death of their owner. During this period, the vote of the trust must be approved by the board of directors of the holding company.
In addition to the “golden share”, the fund will have rights:
- to propose two members to Yandex’s Board of Directors;
- take control of the transfer of ownership;
- agree and make changes to the company’s rules that concern the protection of unpersonalized information of users from Russia;
- allow and prohibit the company from cooperating with the authorities of other States;
- suspend a company executive from duty.
The Foundation’s Board of Directors will include 11 participants, five of whom are representatives of major national universities. Three board members will be from Yandex’s non-state partner companies. Another three members are top managers of the holding itself.
In case Russian citizen shareholders cannot control Yandex activities, the number of representatives from universities will be increased.
The option of transferring part of the corporation’s securities to the management of the fund is a common practice around the world. In addition, these organizations are an opportunity for the holding to implement charitable and social projects.
Changes in the Yandex structure will help resolve legal issues related to the management of the company in case of the death of its head – Arkady Volozh. The reforms and rumors that Sberbank wants to buy shares of the holding in order to influence its activities were stimulated.