Russia’s Alrosa to privatize 10.9% of shares, Chinese investors show interest

Date: 20 May 2016

The Russian diamond company Alrosa is set to privatize 10.9% of its shares, and Chinese investors are showing interest, Alrosa president Andrey Zharkov told reporters.

"As part of the working visit of Deputy Prime Minister of Russia and presidential envoy in the Far East Yuri Trutnev we presented Alrosa before Chinese investors. The government recently adopted the decision to privatize a 10.9% stake in Alrosa this year and we saw that a number of Chinese investors are interested in acquiring these shares,” Zharkov said without specifying the identity of the investors.

According to Zharkov, it is unlikely that the stake will be sold to a single investor.

"It is a public offering. Different investors will show their demand for a certain volume. I don’t think that these are strategic investors, but we did not discuss these details today. Our task is to do the right marketing to tell investors about the company," Zharkov said.

Alrosa is engaged in the exploration, extraction, production and sale of diamonds. It produces diamonds in the Republic of Sakha and the Arkhangelsk region.

The largest shareholders of Alrosa are the Russian government (43.9%) and the Republic of Sakha (25%).

In 2015, Alrosa produced 38.3 million carats of diamonds, sales totaled 30 million carats. Revenues from the sale of diamonds in the past year are estimated to be approximately $3.4 billion.

(Source: TASS)

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