VK Internet Holding Redomiciles to Russia and Delists from London Stock Exchange
Redomiciliation and Delisting: The Journey of VK
Internet holding company VK, has successfully completed its redomiciliation from the British Virgin Islands to the Special Administrative Region (SAR) on Oktyabrsky Island, situated in the Kaliningrad Region of Russia. This significant change of jurisdiction was officially registered on September 26, as confirmed by the SAR management company’s website.
Accompanying the redomiciliation, VK also completed its delisting from the London Stock Exchange (LSE) on September 12, a strategic decision influenced by several factors. Foremost among these were the location of the majority of VK’s assets in Russia, the inability to disclose regulatory news on the LSE platform, and the suspension of trading in VK’s Global Depositary Receipts (GDRs) and bonds from March 3, 2022. Despite these changes, VK plans to continue its listing on the Moscow Exchange.
Shareholder Influence and Approval
The steps towards VK’s redomiciliation and LSE delisting were approved by the company’s shareholders in August. JSC “MF Technologies” is VK’s largest shareholder, owning 57.3% of the voting shares of the internet holding (equating to a 4.8% economic share). “MF Technologies” itself is co-owned by “SOGAZ” and “Gazprom-media holding”, with each having a 45% stake. “Rostec” owns another 10% of “MF Technologies”.
Additionally, VK’s management company “Singularity Lab” also holds shares. These were received from Prosus, a structure of Naspers, and amounted to a 25.7% economic and 12.3% voting share as of December 31, 2021. Other shareholders include the Chinese companies Alibaba Group (9.5% economic and 4.5% voting share) and Tencent (7% economic and 3.3% voting share). The remaining shares are freely traded.
The Impact on VK’s Future
With the completion of its redomiciliation and delisting from the LSE, VK has embarked on a new chapter in its corporate journey. The decision was driven by multiple factors, including the location of the majority of VK’s assets and the suspension of its GDRs and bonds. Despite the delisting from the LSE, VK remains committed to maintaining its listing on the Moscow Exchange.
This noteworthy move by VK follows a global trend of digital companies reassessing their corporate strategies and structures to better align with their operational realities and regulatory environments. As the digital landscape continues to evolve, it is expected that more companies will undertake similar strategic shifts to optimize their operations and shareholder value.
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