Russian State Offers Stake in ALROSA
July 07, 16
(IDEX Online News) – The Russian state recently launched the sale of a stake in diamond producer ALROSA as part of its wide-ranging privatisation program to boost government finances, according to a report on Reuters.com.
ALROSA is not the only company in which stakes will be sold, the Russian government, which is attempting to keep its budget deficit within 3 percent of gross domestic product will also offer stakes in Rosneft, Bashneft and VTB Bank.
ALROSA’s market capitalization has seen a 23-percent increase since the start of the year, and as a result the market value of the proposed 10.9 percent stake is thought to be worth approximately RUB55 billion ($816 million).
It is not yet clear who will buy the stake, but reports suggest that it could be the Russian Direct Investment Fund (RDIF) together with foreign funds, Russian pension funds and some of ALROSA’s current minority shareholders.
ALROSA is the currently the world’s largest diamond miner by volume.