ALROSA sells non-core assets worth over RUB 1.2 bn in Q1 2019

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Moscow, 7 May 2019 – ALROSA took stock of the progress made in Q1 2019 on its non-core assets disposal programme. From January to March, the company was disposing of its non-core assets by selling, liquidating, transferring without consideration or exchanging them. As a result, 21 assets were disposed of for RUB 1.24 bn.

The most significant transaction included the sale of a 100% stake in JSC Golubaya Volna Resort. The stake was sold in February at an open auction for RUB 1.21 bn, almost RUB 70 m above its book value. At this time, the deal is already closed.

“A total of 21 non-core assets were successfully disposed of in Q1 2019, including subsidiary equity stakes, residential and other real estate properties. The overall target for 2019 is to sell 90 non-core assets with a total book value of RUB 6 bn,” said Konstantin Mashinsky, Deputy CEO of ALROSA.

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In 2018, ALROSA sold its gas assets (Geotransgaz and Urengoy Gas Company) and a total of more than 250 properties, including real estate, construction-in-progress, housing stock and land plots. The actual proceeds from the assets sold in 2018 totalled over RUB 31 bn.

In December 2018, ALROSA’s Supervisory Board approved a new version of the Non-core assets disposal programme, with more than 500 assets listed for disposal as per the special register.

The Non-core assets disposal programme is expected to improve ALROSA’s financial performance and management practices, enabling the management team to focus on the company’s core diamond mining business.

This page was last updated on 07 May 2019 at 11.30