Industry News by Nemesis

Russia May Sell Another 8% of Russian Diamond Giant ALROSA

October 11, 2016

Last July 11, the Russian government announced the sale of 10.9% a stake in ALROSA, the world’s largest diamond producer, generating $818 million to help close the country's growing budget deficits. At the time, Russia's Economy Minister Aleksei Ulyukayev said the demand for shares, primarily from European and Asian investors, was more than twice as high as the 10.9 percent offered.

 

Shortly after that sale, it turned out Russia may have been too generous in setting the price of shares in ALROSA, leaving 20 billion rubles ($313 million) on the table: priced at 65 rubles a share in the July offering, ALROSA shares had risen 40 percent in the next two months, reaching a record 94.30 rubles on October 7. 

 

Yesterday, Russian Economic Development Ministry suggested the government privatize another 8% of the diamond mining giant in 2017, Minister Alexei Ulyukayev told reporters.

 

“We’ve put forward this option. We will continue to suggest it and see what happens,” Ulyukayev said. This is not a surprising move, as last April, the Ministry of Economic Development originally proposed the privatization of 18.9% of the shares, which is the largest federal stake in ALROSA that can be sold with Russia and Yakutia still retaining combined control of the company.

 

The head of the Ministry of Economic Development Alexei Ulyukayev reported at the time that in the first stage of the sale of 10.9% of ALROSA's shares can be sold (as they were in July), while the remaining 8% may be sold later.

 

Source: The Diamond Loupe

Please reload

Follow Us...
Recent Posts
Please reload

Archive
Please reload

Search By Tags