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Technological innovation investor Prosus to compose off $700 million stake in Russia’s VK Team

Technology investor Prosus to write off 700 million stake in Russias VK Group

Dutch know-how trader Prosus will produce off its complete 25.9% stake in Moscow-headquartered on line system VK Team, which it states was valued on its guides at $700 million.

VK Group Ltd, recognized till October as Mail.Ru, is a single of Russia‘s premier online firms, regarded for the VKontakte social network, Russia’s response to Facebook.

The organization has a depository receipt listing on the London Stock Exchange and is registered in Cyprus, with headquarters in Moscow.

The writedown introduced on Monday arrives after the VK Group’s CEO Vladimir Kirienko was added to a U.S. sanctions record following Russia’s invasion of Ukraine. Buying and selling in the company’s London shares were suspended on March 3 immediately after tumbling 92% this yr.

“As a consequence of these sanctions, Prosus questioned its administrators on the VK board to resign their positions,” the Dutch firm mentioned in a assertion.

Prosus is section of a cross-keeping entity with Naspers of South Africa, with the two businesses sharing a solitary board.

On a call with traders right after the writedown conclusion was created general public, the company’s executives stated it was not still obvious how the conflict in Ukraine will have an affect on its Russian categorized enterprise Avito, Russia’s major online market.

Prosus CEO Bob Van Dijk stated analysts experienced valued Avito at $6 billion ahead of the conflict in Ukraine.

“Obviously there will be an impression on the company, I think it is too early to say accurately what it will be,” he explained.

CFO Basil Sgourdos stated that though VK Group’s inventory industry value is distinct there are too numerous uncertainties all around Avito to worth the small business, particularly presented the falling worth of the Russian rouble.

Avito’s prices and functions are in Russia, wherever it employs 4,000 individuals.

Prosus shares, which are down 33% this 12 months, ended up up 3.9% at 49.27 euros in Amsterdam. Naspers shares, down 34% in the calendar year to day, closed minor adjusted at 1,634 rand in Johannesburg.

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