Dutch technology investor Prosus will write off its whole 25.9% stake in Moscow-headquartered on-line platform VK Group, which it says was valued on its books at $700 million.
VK Group Ltd, identified till October as Mail.Ru, is one in every of Russia‘s largest internet corporations, identified for the VKontakte social community, Russia’s reply to Fb.
The corporate has a depository receipt itemizing on the London Inventory Change and is registered in Cyprus, with headquarters in Moscow.
The writedown introduced on Monday comes after the VK Group’s CEO Vladimir Kirienko was added to a U.S. sanctions listing after Russia’s invasion of Ukraine. Buying and selling within the firm’s London shares have been suspended on March 3 after tumbling 92% this 12 months.
“As a consequence of those sanctions, Prosus requested its administrators on the VK board to resign their positions,” the Dutch firm stated in a press release.
Prosus is a part of a cross-holding entity with Naspers of South Africa, with the 2 corporations sharing a single board.
On a name with buyers after the writedown choice was made public, the corporate’s executives stated it was not but clear how the battle in Ukraine will have an effect on its Russian categorised enterprise Avito, Russia’s largest on-line market.
Prosus CEO Bob Van Dijk stated analysts had valued Avito at $6 billion earlier than the battle in Ukraine.
“Clearly there will likely be an influence on the enterprise, I believe it’s too early to say precisely what it will likely be,” he stated.
CFO Basil Sgourdos stated that whereas VK Group’s inventory market worth is evident there are too many uncertainties round Avito to worth the enterprise, particularly given the falling worth of the Russian rouble.
Avito’s prices and operations are in Russia, the place it employs 4,000 individuals.
Prosus shares, that are down 33% this 12 months, have been up 3.9% at 49.27 euros in Amsterdam. Naspers shares, down 34% within the 12 months up to now, closed little modified at 1,634 rand in Johannesburg.
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