UPDATE: Source: Russia may decide on ALROSA sale this week

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MOSCOW, Jul 4 (PRIME) -- The government may decide on privatization of Russian uncut diamond mining giant ALROSA this week, a source with knowledge of situation told PRIME on Monday.

“Everything will depend on market conditions. It cannot be ruled out that the issue will be resolved this week,” the person said.

Kommersant business daily reported citing sources that the government can sell a 10.9% stake in ALROSA for 57 billion rubles.

The government is currently discussing placing ALROSA’s shares at 71 rubles apiece during a second public offering (SPO). The company’s shares traded at 68.5 rubles on the Moscow Exchange on July 1, 72–73 rubles in May, and at 70 rubles on average in June.

OppenheimerFunds, Lazard è Genesis, which have minority stakes in ALROSA, are ready to buy the shares worth around $150 million each and get another 1.84% stake in the company each. Other shares could be bought by private pension funds and other funds, sources said.

Another source said that “a wide raneg of foreign and Russian institutional investors” are interested in ALROSA’s shares.

(64.0165 rubles – U.S. $1)

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