MOSCOW: Pavel Prass, one of the co-owners of Russian tech firm Yandex, is set to increase his stake in rival company VK, a statement issued by VK on Friday said.
VK, which reported a net loss of more than $1 billion for 2024, is seeking to increase up to 115 billion roubles ($1.37 billion) through an additional share issue to existing shareholders to reduce its debt burden.
A $5.4 billion cash-and-shares deal finalised in July 2024 marked the end of foreign ownership in Yandex—often referred to as “Russia’s Google”—potentially increasing the Kremlin’s control over the country’s internet landscape.
The deal saw a consortium of Russian investors acquire Yandex’s Russian assets. This group includes senior Russian management from Yandex, a fund backed by oil giant Lukoil, and three other companies owned by businessmen Alexander Chachava, Alexander Ryazanov, and Prass.
VK’s statement reveals that Prass is already a shareholder in VK and is evidence of consolidation in Russia’s tech sector.
On Friday, VK named the buyers in its private subscription of 354 million shares at 324.9 roubles per piece as AM-Invest and Agana. It did not specify how the stakes would be distributed.
According to Russian corporate filings, one of Prass’ companies holds a 19% stake in Agana. If shareholders approve the proposed additional share issue at the meeting on April 30, the buyers will hold a 61% majority of VK’s expanded capital.
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