PRESS: Russia’s ALROSA may buy Polyus Gold

MOSCOW, Oct 15 (PRIME) -- After a purchase by businessman Said Kerimov Russia’s top gold producer Polyus Gold may be sold to ALROSA, preliminary consultations on which started when Andrei Zharkov became uncut diamond mining giant’s CEO, business daily Kommersant reported Thursday citing sources.

In September, Kerimov’s Sacturino, an owner of 40.22% in Polyus Gold, announced a buyback offer for minorities with a November 3 deadline, and after the consolidation the gold producer may be sold to ALROSA, sources in investment companies told the business daily. A source said that the idea and synergy effects were preliminarily discussed by the two companies.

This diversification could help ALROSA hedge financial risks as market demand had contracted, a source told Kommersant. The business daily’s sources also said that Russia’s two biggest banks Sberbank and VTB are interested in financing the deal.

ALROSA’s representative said no such talks are going on. Sources close to the Finance Ministry and the company’s supervisory board said no such discussions were held. A representative for Nafta Mosvka, manager of Kerimov’s assets, said he is unaware of any plans to sell Polyus Gold. Sberbank and VTB declined to comment. A representative for Polyus Gold said the information is not correct.

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