Industry News by Nemesis

Zharkov: Chinese Investors Willing to Take Part in ALROSA's Privatization

May 21, 2016

Chinese investors are interested in the privatization of ALROSA's shares, the president of the company Andrey Zharkov told reporters. The Government of Russia plans to privatize 10.9% of ALROSA's shares. 

"During the working visit of Yuri Trutnev, Deputy Prime Minister of the Russian Federation and the presidential envoy in the Far East, we made a presentation of ALROSA to Chinese investors. Recently, the government decided to privatize a 10.9-percent stake of ALROSA this year. What we've been doing here is something like a 'non deal road show' presentation for company. We see the potential interest from Chinese investors, who may possibly acquire ALROSA's shares," – Zharkov said. 

According to ALROSA, this meeting was quite informative and was aimed at raising awareness of the company, to identify investors' appeal and to learn its scale. 

"We're seeing interest. We will continue to have bilateral meetings with investors organized by the Russian government advisers, and will consult on the privatization scheme of ALROSA," – Zharkov added. 

He did not name specific Chinese companies which have shown interest in the privatization of ALROSA, adding that Chinese investors will discuss more specific parameters of the privatization deal with government representatives. 

At the same time, according to the president of the company, it is likely that the government will not sell a package to a single investor. "It's still a public offering. During the public offering investors indicate their demand for a certain amount of shares. I don't think it's strategic investors. But we haven't discussed these details today. Our task is to hold the right marketing, to tell investors about the company ", - said Zharkov. 

ALROSA is the world's largest company in terms of diamond production. It's engaged in exploration, extraction, production and sale of diamonds. Production is carried out on the territory of the Republic of Sakha (Yakutia) and the Arkhangelsk region.

The largest shareholders of ALROSA are the Russian Federation (44%), the Republic of Yakutia (25%), and ulus of Yakutia (8%). The free float of the company is 23%.

Source: Rough&Polished

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