Yandex to buy Tinkoff for $5.5 billion from Russian bank TCS Group

The Russian bank TCS Group Holding is talks with Russian internet group Yandex about selling the TCS-owned online bank Tinkoff to Yandex for USD $5.48 billion, the companies said on Tuesday.

Tinkoff is the world's largest bank that is fully online, with more than 10 million customers across Russia, reports Reuters:

The idea was first publicly floated last year when Oleg Tinkov, founder of Russia's TCS group, suggested here to Yandex's chief executive that they combine his bank with Yandex, known as Russia's answer to Google.

"The parties have come to an agreement in principle on a transaction that would consist of cash and share consideration worth approximately $5.48 billion or $27.64 per Tinkoff share," Yandex said.

The price represents an 8% premium to Tinkoff's GDR price as of Sept. 21. One half of the deal is expected to be paid in cash and another half with Yandex shares, a banking source and a source familiar with the matter, told Reuters.

Read more at Reuters: Russia's Yandex in talks to buy online bank Tinkoff for $5.5 billion