Why negotiations on the acquisition of Tinkoff Bank are terminated: all the details

Why negotiations on the acquisition of Tinkoff Bank have been terminated: all the details. IT Market


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Natalia Solovieva | 10/18/2020

Why negotiations on the acquisition of Tinkoff Bank are terminated: all the details

A transaction involving the purchase of Tinkoff Bank by Yandex IT company from its parent company, which has already received status
the largest in the non-resource market will not take place. The parties – TCS Group and Yandex – announced the completion of negotiations, the shares of both companies slightly decreased against the background of this news, and experts are building
versions of the reasons for what happened.

The news about the upcoming purchase of one of the leading Russian IT companies of the most technologically advanced Russian bank excited the market no less than information about the division of assets between the same IT company and
its largest partner in the retail banking market, which also has one of the most extensive ecosystems in Russia – Sberbank of the Russian Federation (now Sber). Recall that in the first weeks of summer
This year, Yandex withdrew from both joint projects with the bank, buying its share in the Yandex.Market JV and selling it its share in the Yandex.Money project.

In mid-September of this year, even before the final division of assets with the former partner, the IT company announced a preliminary agreement involving the purchase of another strong player,
the merger with which would make it not only the direct and most visible competitor of the former partner, but also the most powerful figure in the domestic financial technology market – Tinkoff Bank. Amount
the contract was estimated at $ 5.48 billion.

However, on October 16, official information was received that a new potential “deal of the century” would not take place.

“After further discussions, including with the controlling shareholder of Tinkoff Bank, the parties agreed not to continue the potential deal. Thus, negotiations between the parties regarding
potential transactions were immediately terminated, “- this information was posted on October 16 in a release on the official website of the London Stock Exchange.

The main reason for the collapse of the deal is called the fact that the parties could not come to a decision on the final terms of the deal, which would suit both.

So, Oleg Tinkov himself, the founder and chairman of the Board of Directors of Tinkoff Bank, intended to remain in the company after the completion of the transaction. True, he did not specify in what capacity. He also
emphasized that “he has not sold anything yet” and said that he looks at the deal as a merger, not a sale, “Meduza quotes him with a link to Instagram posts in recent numbers.
September.

In mid-October, according to media reports, Oleg Tinkov also announced other possible options for selling the bank, naming potential buyers, including MTS and MTS Bank and
stressing that he has not reached final agreements with anyone yet.

And literally two days after that, on October 16, Oleg Tinkov sent a letter to the employees, where he spoke of his decision to complete negotiations with Yandex and to cancel the deal.

“I made the decision to break off a possible deal with Yandex. Why? We started the conversation by merging, looking for synergies and rapidly growing our client base. And they wanted to build the largest private
company of Russia. In fact, everything turned into a sale, they just wanted to buy Tinkoff, with all the ensuing negative consequences for us. “Tinkoff” is not sold to either Yandex or MTS “, –
says his letter. “I was extremely surprised that there is such a negative attitude towards the Yandex brand, and their consumers do not like it, although, unlike us, they are in a more consumer-friendly
market segment. All this led to the fact that I stopped the deal. We ourselves will grow to 20 million clients, 1 billion in profits, and we will be worth 10+ billion dollars on the exchange. ”

However, Yandex, according to the leading media, believes that the failure of the deal is entirely the responsibility of the founder of Tinkoff Bank.

“We were constantly meeting Oleg halfway in his additional requirements,” the statement of an IT company representative is quoted. – Unfortunately, after each stage of the negotiations, more and more new
requirements. Therefore, when today we learned that Oleg had made a decision to withdraw from the deal, we were not surprised, “Tigran Khudaverdyan, Managing Director of the Yandex Group of Companies, writes in his letter.
which is also quoted by the media.

Whether Oleg Tinkov will continue further negotiations on the sale of his bank with other partners is still unknown. But, experts say, the likelihood of this is quite high. So, for example, according to the opinion
leading analyst at FxPro Alexander Kuptsikevich, in the end the businessman will still sell his bank, because before he always sold his businesses. And the entrepreneur, in addition to the bank, had them
a lot – he is the founder of the Technoshock chain of household appliances stores, the Daria factories that produced frozen semi-finished products (including the popular Daria dumplings), the brewing company
and the eponymous Tinkoff restaurant chain, as well as the Music Shock music store and Shock Records.

“This is not even a hype, but an attempt to praise the goods, as they do in the oriental bazaar. Do not be surprised if in the coming days we hear about a new deal to sell Tinkoff Bank, – the expert concludes.

In connection with the failed transaction, the Central Bank of the Russian Federation intends to check the bank and the IT company for signs of insider trading and identify suspicious transactions affecting quotes. About it
reported in the press service of the regulator with reference to the director of the department for combating unfair practices Valery Lyakh.

Against the backdrop of news of the breakup of the deal, the shares of the failed partners fell in price. So, on October 16, Yandex shares fell by more than 4% at the moment, TCS Group Holding – more than
than 7%. True, according to the trading data of the Moscow Exchange, later the quotes rolled back somewhat from the lows reached. Thus, by 12.26 Moscow time, Yandex shares were down 2.94%, TCS depositary receipts
Group Holding – by 4.41%.

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