Dec 09, 2019

ALROSA’s Supervisory Board to Discuss Disposal of Non-State Pension Fund Almaznaya Osen

In its meeting to be held tomorrow, December 10, 2019, the Supervisory Board of PJSC ALROSA is scheduled to discuss its withdrawal from Non-State Pension Fund Almaznaya Osen (Diamond Autumn).

Established in 2015 as a result of the “reorganisation” of Non-State Pension Fund Almaznaya Osen, which had been set up in 1995, the Joint Stock Company Non-State Pension Fund Almaznaya Osen is engaged in non-state pension provision and mandatory pension insurance activities, ALROSA explained. The Fund has six affiliates: in Mirny, Lensk, Aikhal, Udachny, Yakutsk and Moscow. PJSC ALROSA holds 99.75% of the Fund’s shares.

“At present, the Almaznaya Osen fund provides non-state pension provision services to nearly 29 thousand clients and more than 34.7 thousand of mandatory pension insureds,” ALROSA revealed.

ALROSA CEO Sergey Ivanov commented: “First of all, I would stress that potential disposal of ALROSA-held shares of the Fund will in no way affect performance of obligations towards the customers, the majority of which are retired and current ALROSA employees. In case the owner changes, all mandatory pension insurance contracts entered into by and with the Almaznaya Osen customers as well as non-state pension provision contracts will remain valid as required by the law and will have full force and effect without any changes or limitations.”

He assured persons concerned that ALROSA “will retain control of the most significant decision-making processes” of the Fund.

“According to a shareholder agreement that will be signed at the Fund disposal, Almaznaya Osen will not be subject to winding up or reorganisation, likewise no shares of the Fund will be allowed for sale to any third party,” he stressed. “Furthermore, ALROSA Group will be represented in the Board of Directors of Almaznaya Osen. The Group’s consent will be required for approval or any modification of the Fund’s investment policy.”

Explaining the rationale of ALROSA’s management regarding the “potential disposal” of Almaznaya Osen Fund, he said: “First, non-state pension provision and mandatory pension insurance are far from being core businesses of ALROSA. Efficient management of such specific business requires specific competences from the shareholder. Clearly, professional participants of this market are better equipped in this field than ALROSA.”

He added: “We are interested to see a company with a relevant core business as a strategic investor of the Almaznaya Osen Fund. It must be a big and reliable company, which understands specifics of pension market and will be able to efficiently manage and develop this business for the benefit of Almaznaya Osen’s clients. From its part, ALROSA warrants that it will continue to meet all obligations concerning corporate pension schemes and non-state pension provision contracts signed with its employees.

“Second, under ALROSA’s ownership the Fund has already reached its maximum within ALROSA Group. We believe that its further growth is possible only under a new ownership.

“Finally, in case the relevant decision is made, a disposal of the Fund shares will have a significant economic benefit for ALROSA and its shareholders, including the Republic of Sakha (Yakutia).”

ALROSA said that further information will be provided after the Supervisory Board meeting.