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The largest shareholder in the Russian internet and social media company VK (formerly known as Mail.ru), sold its 57.3% stake to insurer Sogaz ahead of a delisting. Sogaz is part-owned by a longtime ally of the Kremlin, Yuri Kovalchuk. Why is this interesting? Prosus has a minority stake in VK.
VK's brands include Odnoklassniki and Vkontakte social network - the latter often seen as Russia's answer to Facebook. They also own online brands including a marketplace and grocery delivery services Delivery Club and Samokat.
Naspers bought a 30% stake in Mail.ru for $166 million in 2006 and continued to pump cash into the business. Mail.ru listed in 2010 at a share price of $28. Today they're trading at less than half that, notwithstanding the growth in users that most of its brands have enjoyed. That's disappointing, given that Mail.ru was founded in 1998, the same time as Google.
VK's retreat from the stock market will shaft its minority shareholders, including Prosus. So far this year, VK shares have fallen by 48.5%. We've yet to see a SENS announcement from Naspers/Prosus.
