16th Sep 2014 10:00
LONDON (Alliance News) - Russian internet group Mail.Ru Group Ltd Tuesday said it has secured a deal to buy the remaining stake of VK.Com Ltd it did not already own for USD1.5 billion.
Mail.Ru is buying the remaining 48% stake in the company from Blesmir Development Ltd and Palagon Ltd. The deal means Mail.Ru now owns 100% of VK.Com and will now fully consolidate the business into its operations.
The deal was funded through existing cash reserves and a RUB22.2 billion loan from Gazprombank JSC.
In addition to the acquisition, United Capital Partners, Mail.Ru and Pavel Durov, the Russian entrepreneur and founder of VK.Com, have agreed all outstanding litigation involving VK.Com and related matters will be dropped.
"We are happy to announce the acquisition of 48.01% of VKontakte stake from UCP. The consolidation of 100% of VK and the termination of all outstanding shareholder disputes will allow focus on the product and its further development," said Dmitry Grishin, Mail.Ru's Chief Executive.
Mail.Ru shares were untraded on Tuesday, quoted at 29.65 pence per share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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