Alrosa Valuation Disputed As Too High

The battle for the control of Alrosa continues, as the federal and Sakha governments try to up their stakes in the company. In the latest round, the Sakha republic is disputing Alrosa’s $6.4 billion valuation as being too high.

According to a report in Kommersant, the Sakha republic sent a letter to the federal finance ministry complaining about the valuation. The valuation was commissioned by the federal government, which is interested in increasing its share in the diamond mining monopoly from 37 percent to 50 percent plus one share. The valuation has still not been officially released.

Sakha, which holds a 32 percent stake in Alrosa, is interested in increasing its holding to 40 percent, but is apparently after a low valuation to make it financially feasible.

The rest of Alrosa is held by employee organizations and eight local district governments.