Alrosa Seeking Bank to Set Valuation

State-owned Russian miner Alrosa announced a tender for an appraisal contract to determine the fair market value of one company share. The tender is a first step in the repurchasing shares process from minority shareholders.

According to reports in the Russian press, the tender will be held on March 15.

Alrosa has begun the process of repurchasing shares from minority shareholders at $12,000 per share in order to increase the stakes of the Russian government and the Sakha (Yakutia), the company's main shareholders.

"This effort is the direct result of agreements reached between the governments of Russia and the republic of Sakha (Yakutia), and also interested ministries to fulfill the Russian president's instruction on measures to protect state property in the diamond sector of Sakha (Yakutia), said the Alrosa press office, reports RIA Novosti.

The reported purchase price of the shares at $12,000 is well above the nominal value of 13,500 (around $478) per share. The president of Sakha (Yakutia), Vyacheslav Shtyrov told RIA Novosti that the repurchase plan would not only allow the governments of Russia and Sakha to increase their stakes in the company, but would also compensate for budget shortfalls.