Yandex N.V. and Uber entered into agreements to spin off the self-driving vehicles business, Yandex Self Driving Group B.V. (“Yandex SDG”) from their ride-hailing and foodtech joint venture, MLU B.V.. Following these transactions, Yandex SDG will be directly owned by Yandex and Uber. Yandex will continue to consolidate the results of Yandex SDG and will be reporting Yandex SDG results in the “Other Bets and Experiments” segment of Yandex N.V.
Simultaneously with the spin off transaction, Yandex will invest $150 million into Yandex SDG, $100 million of which will be in the form of equity and the remaining $50 million in the form of a convertible loan. Yandex will also purchase a portion of Uber’s stake in Yandex SDG. As a result of the transactions, Yandex will own 73% of Yandex SDG, while Uber will own 19%. The remaining 8% will be reserved for Yandex SDG management and employees.