March 26, 2020 – ALROSA Supervisory Board decided to change the form of sale of the Company’s share in the Non-State Pensionary Fund Almaznaya Osen (Diamond Autumn). The sale of the asset to the sole bidder has been approved after the closed auction announced earlier was abandoned.
ALROSA Supervisory Board approved a disposal of the Fund stock owned by the Company in December 2019. To guarantee safety and augmentation of pension savings of the clients of Almaznaya Osen, including employees and retirees of the Company, the list of potential buyers was limited to non-state pension funds with the highest reliability rating, significant assets, stable high yield and a relevant expertise.
Joint Stock Company Non-state Pension Fund GAZFOND Pension Savings (JSC NPF GAZFOND Pension Savings) meets these requirements in full. It filed an application to participate in the auction and subsequently reaffirmed that it is ready to acquire 99.75% of Almaznaya Osen shares from ALROSA on declared terms and conditions.
“We are confident that the sale of an asset that is non-core for a diamond-mining company to such a professional market participant as JSC NPF GAZFOND Pension Savings will foster the development of the Fund for the benefit of its clients, the majority of whom being employees and veterans of the Company,” said ALROSA CEO Sergey IVANOV. “In turn, ALROSA and its shareholders, including the Republic of Sakha (Yakutia) and local municipalities, will benefit from optimizing the structure and improving the effectiveness of the Company’s governance”.
“The decision of ALROSA Supervisory Board shows high confidence in our Fund. Indeed, JSC NPF GAZFOND Pension Savings meets all declared requirements. Moreover, the Fund has extensive experience and best practice in servicing corporate clients. We are sure that we will be able to keep a well-deserved level of pension support for ALROSA’s employees and veterans provided by Almaznaya Osen,” commented Oleg Byaloshitskiy, General Director of JSC NPF GAZFOND Pension Savings.
Terms of sale include an agreement under which ALROSA continues to have representatives in the Board of Directors of NPF Almaznaya Osen and a casting vote on key matters, including reorganization, liquidation and sale of shares in the Fund to third parties.
The sale of ALROSA’s shares in Almaznaya Osen will not affect the Fund’s obligations to its clients. After the change of ownership, all mandatory pension insurance and non-state pension provision agreements according to law stay in place.
ALROSA owns 99.75% of shares in JSC NPF Almaznaya Osen. It was established in 2015 from Non-state Pensionary Fund Almaznaya Osen founded back in 1995. Almost 29 thousand people are serviced under the non-state pension provision program in Almaznaya Osen, and over 34.7 thousand people – under the mandatory pension insurance program. The Fund that has five offices in Yakutia and one in Moscow. The majority of its clients are ALROSA’s employees and retirees.