fuFunds advised by private equity company Baring Vostok have made a huge profit after selling off a 3 percent stake in Yandex for $327 million, a move that reflects a growing trend among the search engine's shareholders.
A notification sent to the U.S. Securities and Exchange Commission showed that the sale took place around Aug. 29, Vedomosti reported Tuesday.
The sale was managed by BC&B Holdings, which holds the shares on behalf of the investment funds.
The Baring Vostok funds have steadily reduced their stake in the Internet company from 16 percent on Dec. 31, 2012, to about 7 percent after the latest sale.
The funds were the largest sellers during Yandex's second public offering in March, grossing $413.6 million through the sale of a 5.5 percent stake.
They have made profits of about $900 million through the sale of shares in Yandex since 2000, when they paid just $5 million for 35.7 percent of the company.
Yandex's total value has exploded in that time, from less than $15 million in 2000 to about $11.25 billion.
Now is a particularly favorable time to sell shares in Yandex, as its stock price continues to rise despite a faltering economy, UralSib analyst Konstantin Belov said.
A number of long-term shareholders have taken this route, including the American hedge and private equity fund Tiger Global Management, which sold its entire 5.5 percent stake in the company for $329 million in 2012.
Yandex's sustained growth can be credited to an upsurge in online advertising, which is the company's primary source of income, Belov said.
Sales of contextual advertising grew by 37 percent in the first half of 2013 compared to 13 percent in media advertising, the Russian Association of Communications Agencies said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
