DST and Mail.ru in the sale of shares in Facebook can get a return on initial investment of $ 1.5 billion

16th May 2012 / CIS News / Comments are Disabled

DST Global and Russian Mail.ru Group on the sale of shares in the social networking site Facebook as part of its initial public offering (IPO) can get income from the initial investment of about $ 1.5 billion, should be out of place settings of Facebook and the informal information about investments DST / Mail.ru.

At the beginning of 2011. American Business Media reported that the fund invested in shares of DST Facebook a total of $ 900 million, including two rounds of new funding for Facebook – in May 2009. and January 2011. (The rest of the paper DST redeemed from shareholders social network).

in March 2012. blog VentureVillage, writing about startups in Europe, said with reference to non-public document DST, that the total investment fund to Facebook totaled $ 900 million

debut on investment group Digital Sky Technologies (autumn 2010. Fund was divided into DST Global and Internet holding Mail.ru Group) was announced in May 2009.: when the company acquired the preferred shares of Facebook for $ 200 million and was 1.96% in the capital of the social network (ie, the entire business within Facebook in this transaction was valued $ 10 billion).

in 2010. DST part of the share on Facebook has been translated to the balance of Internet holding Mail.ru Group, displayed on an IPO on the London Stock Exchange.

As reported earlier today, DST Global investment fund of Russian businessmen Yury Milner and Alisher Usmanov and Mail. ru Group (according to materials of Facebook, the company is no longer affiliated with each other) increased supply of shares they intend to implement during the IPO Facebook. DST Global increased its offering of 26.26 million to 45.66 million securities, and Mail.ru Group – from 11.27 million to 19.60 million shares.

offering price range is 34-38 Facebook dollars per share. DST at the top of the range can help out to $ 1.74 billion, Mail.ru Group – 745 million dollars (total – about $ 2.5 billion). Thus, based on the valuation of investments in shares of Facebook (900 million dollars), DST / Mail.ru realize revenue to the tune of $ 1.5 billion

Currently DST Global owns about 131.3 Facebook million shares of two classes – A and B (Class A shares are entitled to one vote, B – 10 votes, while one share of Class B may, at any time be converted into share class A). At the top of the price range (38 dollars. / Share) DST package costs about $ 5 billion

In the case of oversubscription of the option shares on the Facebook in full DST Global will sell an additional 6.85 million shares of social networking and Mail.ru Group – 2,94 million shares. On top of the price range of accommodation DST may ultimately bail out two billion dollars, and Mail.ru – 857 million dollars (total – nearly $ 2.9 billion).

DST Global Limited directly and through a variety of structures controls 5.5% of voting capital of Facebook. In this post-IPO voting share of DST to drop to 5.2%, while fully taking into account the realized option – up to 4.9%. Mail.ru Group Limited owns 3.1% of the voting rights in Facebook, and after the IPO, its share will drop to 2.3% (with the option – up to 2,2%).

Note that in the IPO Facebook are only displayed on a stock exchange shares of Class A, which are entitled to one vote. In this part of the pre-IPO shares of Class B, belonging to the selling shareholders will be converted into shares of Class A. Thus, the change of the voting shares of the shareholders will be determined mainly by changes in their stakes in more tangible actions class B.

Facebook lifted the eve of the upcoming IPO price range of 28-35 dollars. / Share up to $ 34-38 / action in connection with the increased interest of investors. The whole business Facebook can be estimated at 93-104 billion dollars on the basis of the declared price range and the expected number of shares after the offering.

Initial public offering of shares of Facebook will be a record in the history of the Internet sector, and one of the largest IPO in general. It is expected that the offering price will be announced on May 17, and trading in shares of Facebook on the stock exchange in New York will begin May 18th 2012. (Under the ticker FB).

Tags: billion Facebook initial investment Mail.ru return Sale shares