adminMOSCOW. — The world’s top diamond producer, Alrosa, said yesterday it would float 16 percent of its state and management-held shares as part of the Russian government’s teetering privatisation drive.
A stock valuation released by one of the Russian banks involved in the issue has priced the stake at about US$1,4-US$1,6 billion.
“The offering will expand our access to the international capital markets and help to unlock the value of the company,” said Alrosa chief executive Fyodor Andreyev.
The gem producer had remained one of Russia’s most secretive companies despite its global ambitions and long history of providing the federal government with budget revenues at times of economic malaise.
It is also keen to find the resources necessary to launch new mining projects that would make up for its slowly-depleting Soviet-era base.
Alrosa had said in 2011 that its existing mines would provide it with diamonds for the coming four decades only. — AFP.
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