March 27, 2020 – ALROSA summarizes results of non-core assets disposal in 2019. In 12 months, the Company sold, gratuitously transferred, liquidated or exchanged 109 objects with the book value over RUB 2.55 billion.
The most significant transaction of 2019 was the sale of 100% shares in JSC Golubaya Volna Resort at an open auction for RUB 1.21 billion. The disposal of another major asset has been postponed to 2020. Initially the company’s 100% share in LLC Lensk Heat and Electric Power Line Enterprise was expected to be auctioned in Q4, 2019.
“The total of 109 non-core assets, or 21% more than planned, were disposed in 2019. The assets include equity stakes in two affiliated companies, 55 real estate units, 46 housing units, 6 construction in progress objects”, said ALROSA Deputy CEO Konstantin Mashinskiy.
ALROSA has been implementing the non-core assets disposal program since 2013. Its aim is to increase economic efficiency of ALROSA Group by improving management quality and focusing attention on core activities. ALROSA Supervisory Board each year approves the list of assets subject to disposal. The most recent register, updated at the end of December 2019, comprises of 32 objects with the book value of RUB 20 million and higher. These include equity stakes in 6 affiliates and 26 real estate units.