Report: Russia’s ALROSA privatization bid book to open later Wed

MOSCOW, Jul 6 (PRIME) -- The bid book for a secondary public offering (SPO) to privatize Russian uncut diamond mining giant ALROSA will open on Wednesday after the closing of the trading session on the Moscow Exchange, Reuters reported citing financial market sources.

The offering will be based on an accelerated bookbuilding. Russia’s private pension funds, foreign funds Lazard and Oppenheimer plan to participate, one of the sources said.

Another source told Reuters that the offering price will be set on Friday.

The government is currently discussing placing ALROSA’s shares at 71 rubles apiece during a SPO, Kommersant business daily reported Monday citing sources.

The Federal State Property Management Agency holds 43.93% in ALROSA, the government of the republic of Yakutia holds 25% plus one share, 8% is distributed among eight Yakutia’s regions, and 23.07% is in free-float.

Economic Development Minister Alexei Ulyukayev said earlier that the Russian government plans to sell a 10.9% stake in ALROSA sometime in July–August.

(64.2676 rubles – U.S. $1)

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