Report: Alrosa Buying Shares from Minority Holders
February 23, 06
A report in the Russian press says Russia's rough diamond miner Alrosa has started buying shares from its minority shareholders. Among the possible sellers are Alrosa worker unions and employee organizations.
Alrosa's supervisory board has reportedly instructed the company's board of directors to set the buyback to benefit its two key stockholders - the Russian government and the government of the autonomous republic of Yakutia (Sakha).
Russian Economic Development and Trade Minister German Gref said earlier that Alrosa would buy shares from the company's staff to increase the Russian government's stake into a controlling block.
Alrosa's affiliated bank KB MAK-Bank will be buying the shares till the end of April.
According to RIA Novosti, who is reporting the news, the decision is in line with an agreement between the Russian and Yakutia governments as well as with a Russian presidential decree from April 2001 to protect state-controlled assets in the Yakut diamond industry.
Russia currently holds a 37 percent stake in the diamond company and Yakutia holds 32 percent of ownership. Alrosa's other shareholders are Alrosa employees (23 percent) and eight districts of Yakutia that hold 1 percent each.