Yandex Addresses Market Rumors
MOSCOW and AMSTERDAM, the Netherlands, October 22, 2018 (GLOBE NEWSWIRE) -- Yandex (NASDAQ: YNDX) acknowledges recent media speculation about potential changes to our capital structure. The Company regularly receives various offers and expressions of interest from third parties, but it is the Company’s policy not to comment on market rumors.
In the normal course of business, the Board of Directors and its relevant committees periodically consider questions relating to the optimal capital structure of our Company. The Board is committed to good corporate governance and, in the exercise of its fiduciary duties, evaluates any potential steps with a view to protecting the long-term interests of the Company and all of its shareholders and stakeholders. It should also be noted that any corporate actions affecting the rights of holders of any class of shares are subject to robust governance policies, which include not only Board approval, but also the approval of holders of 75% of the Company’s Class A shares.
Arkady Volozh, the Company’s CEO and co-founder, currently holds Class B shares representing approximately 48% of the votes of the Company and approximately 10% of the economic interest. Mr. Volozh and other founders and early employees, who also own Class B shares, together currently hold approximately 57% of the total voting power in the Company. In accordance with Yandex Articles of Association, our Class B shares cannot be transferred or sold to any third party, including to heirs. This dual class capital structure, which is common in our industry, was adopted prior to our IPO to preserve the entrepreneurial spirit of Yandex and to ensure that we focus on our long-term vision rather than yielding to short-term capital market volatility.
Mr. Volozh commented, “When we founded Yandex twenty one years ago, we never dreamt that it would become a world-class technology company. I am extremely proud of what our team has accomplished in this time. We have gone from a few people working out of an apartment to a company with almost 10,000 team members. We continue to delight our audience with innovative products that improve the daily lives of tens of millions of consumers. And we are not done. I am committed to leading Yandex to new heights, and I have no intention to sell my shares in the Company. I support the Board’s efforts to continuously evaluate the Company’s capital structure to best position the Company for the future.”
Board deliberations may or may not lead to any proposal to change the Company’s capital structure or to any potential transaction, and the Company does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.
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