At the absentee voting on July 10, ALROSA Supervisory Board resolves to increase the Company’s stake in PJSC ALROSA-Nyurba up to 97.48% by purchasing 10% of shares.
ALROSA holds 87.48% of shares in PJSC ALROSA-Nyurba. 2.523% of shares belong to minority shareholders. A 10%-stake belongs to JSC RIC Plus controlled by the Government of the Republic of Sakha (Yakutia). This stake is included in the forecast plan for the state property privatization in Yakutia, and the Republic is planning to use the proceeds from the sale to support and develop local producers of goods, works and services, develop and improve the competitiveness of strategic and core enterprises, and implement investment and socially significant projects.
The transaction will amount to about RUB 12 billion based on an independent appraiser’s report. The shares purchase procedure is expected to be finalized by September 2018.
Upon the purchase of 10% of shares, ALROSA will consider the possibility of the second stage of integration – joining of PJSC ALROSA-Nyurba to the Company to cut administrative and management costs, centralize and improve management system and avoid duplications of functions.
PJSC ALROSA-Nyurba holds licenses for the development of Nyurbinsky and Botuobinsky deposits in Yakutia. Nyurba Mining and Processing Division ALROSA carries out mining at these deposits on a contract base. In 2017, Nyurba Mining and Processing Division mined 7.7 million carats, or 19% of ALROSA Group production.