Tinkoff is among the biggest digital banks in the world with more than 10 million customers
Russian internet group Yandex is in discussions with TCS Group to acquire the latter’s online banking subsidiary Tinkoff in a cash-cum-stock deal worth about $5.48bn.
The parties have reached an agreement in principle regarding the deal under which Yandex will pay $27.64 per share to acquire 100% of all the shares of the Russian digital bank.
The final terms of the deal will be subject to the satisfactory completion of due diligence and also an agreement on definitive documentation. This will include agreement pertaining to the closing conditions as well, said Yandex.
According to the internet company, there can be no assurance that any firm offer will be made for the online bank, and also on the final terms on which any such offer could be made.
Yandex to acquire Tinkoff via a scheme of arrangement
Yandex stated: “The current intention of Yandex and Tinkoff is for the Potential Transaction to be implemented by means of a scheme of arrangement of Tinkoff under Cyprus law.
“The Proposed Transaction would be subject to the approval of Yandex’s Class A shareholders and General Meeting of shareholders. If the Potential Transaction proceeds, Yandex will provide notice of its shareholders meetings and accompanying documentation in due course.”
Based in Cyprus, TCS Group offers online retail financial services. Its subsidiaries include Tinkoff Bank, Tinkoff Mobile, Tinkoff Insurance, and others.
Currently, TCS Group is developing Tinkoff ecosystem, which provides financial and lifestyle services for individuals and businesses through its web interface and mobile app.
Tinkoff Bank, which is at the core of the financial ecosystem, is claimed to be among the biggest online banks in the world. The Russian online bank is said to cater to more than 10 million customers.
Founded in 2006, the bank has no branches at all. In August 2017, the Russian online bank launched its own ATM network which uses face recognition technology.