Mail.ru Group, which plans to sell shares at a London IPO, will invest some of the proceeds from IPO into increasing its stake in the leading Russian social network Vkontakte.ru.
Mail.ru Group, which already owns social network Odnoklassniki.ru, plans to acquire an additional stake in Vkontakte, valuing it at $1,500 million, reported Vedomosti.ru
Mail.ru Group intends to purchase a 7.5 percent stake in Vkontakte.ru for $112.5 million. As a result, Mail.ru Group will increase its stake in Vkontakte from 24.99 percent to 32.49 percent. Mail.ru Group has an option to acquire an additional 7.5 percent stake in Vkontakte.ru in 2011.
Launched in late 2006, Vkontakte generated revenues of $34.5 million last year. The site has a monthly audience of more than 19 million users in Russia, according to TNS Web Index.