Report: CEO says ALROSA privatization unreasonable now

MOSCOW, Nov 15 (PRIME) -- Privatization of Russian uncut diamond giant ALROSA is unreasonable now, CEO Sergei Ivanov told Rossiya 24 television channel on Wednesday.

“The privatization issue is always a question for the shareholders. As for a good or bad time, then certainly, in my opinion, after the accident (at the Mir mine) time is not very good, because many investors reacted to it with a sale of shares. Our quotations have slightly decreased in recent months,” Ivanov said.

“As I see current potential inside ALROSA, I’m sure that the shareholders do not currently have a reason to dispose of their stakes. This refers both the federal stake, the republican stake, and the minority shareholders. As a minor shareholder of our company, I also believe in its growth and plan to slightly boost my stake.”

In July 2016, the government sold 10.9% in ALROSA for around 52.2 billion rubles having reduced its stake to 33%. The republic of Yakutia owns 25% plus one share, 8% belongs to eight districts of the republic, and free float accounts for 34%.

The government’s privatization plan for 2017–2019 encompasses cutting the state stake in ALROSA to 29% plus one share.

(59.6207 rubles – U.S. $1)

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