June 23, 2020 / 9:27 PM / 12 days ago

UPDATE 2-Yandex to raise $800 mln from share issue, to end JV with Sberbank

* Yandex will do a public offering for $200 mln

* To raise additional $600 mln in private placement

* Yandex, Sberbank to end their JVs in 3rd quarter

* Yandex's non-compete obligations will be then terminated (Adds details, quotes, context)

MOSCOW, June 23 (Reuters) - Russia's top search engine Yandex plans to raise $800 million by issuing new A-class shares to finance its future growth and plans to terminate its partnership in two projects with Sberbank , Russia's largest lender, it said.

As part of this restructuring, Yandex will buy 45% of a marketplace Yandex.Market from Sberbank for 42.0 billion roubles ($610 million) and sell 25%+1 rouble in e-payment service Yandex.Money to Sberbank for 2.4 billion roubles, it said in a statement on Tuesday.

To fund the future growth and strategic opportunities in e-commerce and other sectors, Yandex will do a public offering of $200 million of newly issued Class A shares, it said. Goldman Sachs will be the bookrunner for the offering.

Yandex will also do a private placement and sell its new shares to Russia's second-largest lender VTB and businessmen Roman Abramovich, Alexander Abramov and Alexander Frolov for $600 million.

"...We believe now is the right time for us to fully consolidate operating control over Yandex.Market and accelerate our e-commerce strategy," Greg Abovsky, Yandex chief financial officer, said in the statement.

"The equity offering ... will give us the firepower we need to build one of the leading e-commerce players in Russia, while also maintaining the flexibility to pursue other strategic opportunities."

Its transactions with Sberbank are expected to be closed in the third quarter of 2020. After the deals, Yandex's non-compete and exclusivity obligations regarding financial services will be terminated.

Yandex also disclosed its preliminary financial results for April-June. Its consolidated revenue is expected in the range of 40.6 billion roubles to 41.8 billion roubles, compared to 41.4 billion roubles a year ago, as the impact of the novel coronavirus pandemic hit its advertising and ride-hailing businesses.

Core earnings - adjusted EBITDA - are expected at 7.5 billion-8.0 billion roubles, down 40.8% at the midpoint range from a year ago. ($1 = 68.8200 roubles) (Reporting by Nadezhda Tsydenova; writing by Polina Devitt; editing by Jonathan Oatis and Grant McCool)

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