UPDATE: Russia opens ALROSA privatization bidding book – min

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MOSCOW, Jul 6 (PRIME) -- The Russian government has opened a bidding book for a secondary public offering (SPO) to privatize a 10.9% stake in uncut diamond mining giant ALROSA, Economic Development Minister Alexei Ulyukayev told reporters Wednesday.

“Today, the Russian Federation has offered 10.9% of common shares in ALROSA, owned by the federal government, for sale,” he said.

“Moreover, the Russian government will not take any decisions on additional sales of shares in ALROSA owned by the federal government within 180 days after it announces the offer price.”

ALROSA said in a statement that the SPO will be carried out at the Moscow Exchange and VTB Capital and Sberbank CIB are joint global coordinators and joint book-runners of the placement.

In April, Ulyukayev said that the market situation allows the government to sell 18.9% in ALROSA and non-government pension funds are ready to offer more than 100 billion rubles for the asset, but later the government decided to offer 10.9% in the company.

The government is currently discussing selling ALROSA’s shares at 71 rubles apiece during the 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.

(64.2676 rubles – U.S. $1)

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