Alrosa Diamonds to sell 14% of shares

Russian diamond company Alrosa is to carry out a share offering on CJSC MICEX Stock Exchange. The announcement follows several years of rumors of a share offering that was reportedly delayed. The offering will involve the sale of shares owned by both the Russian Federation and the Republic of Sakha (Yakutia), where most of the company’s mines are located. Both the Russian government and OJSC RIC Plus will offer up to 515,547,593 shares representing a total of approximately 14% of Alrosa's shares.

In addition, Wargan Holdings Limited, a Cyprus company controlled by Alrosa, will offer up to 150,237,555 shares representing approximately 2% of the miner's shares. Olga Dergunova, Deputy Minister for Economic Development of the Russian Federation and Head of the Federal Agency for State Property Management, stated that the company’s partial privatization including the offering of the shares through the facilities of MICEX SE, is a landmark step in the implementation of the government’s policy of reducing the state’s role in the economy.