Source: Russia sells 10.9% stake in ALROSA for 65 per share

MOSCOW, Jul 11 (PRIME) -- The government has set the price of a secondary public offering (SPO) of 10.9% in Russian diamond mining giant ALROSA at 65 rubles per share, a source close to the placement told PRIME on July 9.

A bidding book for the government’s 10.9% stake in the company opened on July 6 and closed on July 8. “Those who offered less than 65 rubles did not receive the shares,” a source said.

According to a source close to participants of the SPO, the Russian Direct Investment Fund (RDIF) and Asian sovereign funds acquired about 50% of the shares on offer.

“The RDIF and its co-investors including sovereign funds of the Middle East and Asia bought about 50% of the placement. The RDIF stake was several times lower than the interest of the international funds including some Western institutions.”

Economic Development Minister Alexei Ulyukayev said earlier that the funds raised in the sale of the stake will be for state spending.

Ulyukayev also said the government will not make any decisions on additional sales of shares in ALROSA within 180 days after the price announcement.

Before the SPO, the Federal State Property Management Agency held 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.

(64.2488 rubles – U.S. $1)

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