Mail.Ru Group sale of Headhunter business to investor consortium led by Elbrus Capital

26 February 2016   
Mail.Ru Group Limited (LSE: MAIL, hereinafter referred as "the Company" or "the Group"), today announces the sale of 100% of HeadHunter shares to an investor consortium led by Elbrus Capital for RUR 10 billion.  

The deal was closed on 25th February 2016 with the cash due to be paid in 2 tranches with RUR 5.5bn already received and RUR 4.5bn to be received by 30th April 2016. The second tranche is unconditional.

Mail.Ru Group has been the owner of HeadHunter, the leader in the online recruitment segment in Russia, Ukraine, Kazakhstan, Belarus, and Azerbaijan, for 7 years. During that time HeadHunter has established its leading position in the Russian market, as its monthly audience has grown from 4 to 19 mln unique users, its resume database has increased from 3 to 19.7 mln, and its vacancy database has grown from 70 to 300 thousand.  During  that  period  HeadHunter  has  entered  the  Belarus  (2010),  Azerbaijan  (2012),  Georgia, Uzbekistan  and  Kyrgyzstan  markets,  launched  a  Russian  Employer  Rating,  Wage  Database,  Clickme advertising service, online Vacancy Fair, online Talent Assessment service and Academy e-learning service. SimilarWeb, a global web analytics platform, ranked HeadHunter on the 3rd place in its «Top 50 sites in the world for Jobs and Employment» website traffic ranking.

In  FY  2015  HeadHunter’s  revenue  remained  broadly  flat,  decreasing  1.5%  to  RUR  3,055  million,  and EBITDA decreased 2.5% to RUR 1,506 million respectively with H2 2015 revenue growth of 2.4% to RUR 1,621 million and an EBITDA decline of 2.3% to RUR 795 million.

Mail.Ru Group Investors:
Matthew Hammond
Mail.Ru Group

Mail.Ru Group Press:
Madina Tayupova

HeadHunter Press Contacts:
Ivan Tyutyundzhi
Phone: +7 903 197 70 01

Elbrus Capital Press:
Ilya Novokhatsky
Phone: +7 (925) 518 1798

Notes to announcement:
HeadHunter's revenue and EBITDA numbers presented herein are prepared based on principles used for the segment financial information of the Company's consolidated operations, i.e. do not include certain adjustments  which  would  be  required  under  IFRS.  The  accounting  principles  used  in  segment  financial reporting are described in more detail in the Company's prior announcements.

About HeadHunter

HeadHunter is the leading Russian online recruitment company founded in 2000 and operating in Russia, Ukraine,  Belarus,  Kazakhstan,  Azerbaijan,  Lithuania,  Latvia  and  Estonia.  The  company’s  largest  asset  is  website  owning  the  database  that  comprises  300  thousand  open  vacancies  and  19.7  million resumes. 500 thousand users receive job interview invitations via every week.

About Mail.Ru Group
Mail.Ru Group (LSE:MAIL, listed since November 5, 2010) is a leading Internet company in Europe and the fifth  largest  Internet  business  globally,  based  on  the  total  time  spent  (comScore,  top  100  properties, December 2015, worldwide).

In  line  with  the  ‘communitainment’  (communication  plus  entertainment)  strategy,  the  Company  is developing  an  integrated  communications  and  entertainment  platform.  The  Company  owns  Russia’s leading email service and one of Russia’s largest internet portals, Mail.Ru. The Company operates three of the major Russian language social networks, VKontakte (VK), Odnoklassniki (OK) and Moi Mir (My World), and Russia's largest online games business. The Company’s portfolio also includes Mail.Ru Agent and ICQ – two instant messaging services popular in Russia and the CIS.

The  Company  holds  a  minority  equity  stake  in  Qiwi  (1.31%)  and  a  number  of  small  venture  capital investments in various Internet companies in Russia, Ukraine and Israel. In November 2013, the Company launched  in  the  US  followed  by  the  worldwide  launch  to  provide  communication  and entertainment products and services.

About Elbrus Capital
Elbrus  Capital  is  a  leading  private  equity  business  in  Russia  and  the  CIS.  Elbrus  Capital  advises  private equity funds which have led over 70 acquisitions since 2007. The funds' total assets under management exceed $1 billion. Key investors in the funds are large international institutional investors and international development institutions.  

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