PJSC ALROSA’s Supervisory Board has approved the disposal of its shares of Almaznaya Osen (Diamond Autumn) Non-State Pension Fund at its meeting held on December 10, 2019.

“The decision to sell this asset to a professional financial company is aimed to accelerate the fund’s further development to the benefit of its clients, including current and retired employees of the company,” the Company said announcing the move. “ALROSA, in turn, will get a positive economic effect.”

ALROSA CEO Sergey Ivanov commented, “The sale of the company’s stake in the Non-State Pension Fund to a financial company specialising in this sector will allow it to manage the Fund’s assets more effectively and to enable its further growth. In turn, ALROSA and its shareholders, including the Republic of Sakha (Yakutia), will receive a financial gain.”

ALROSA’s Supervisory Board is exercising great care to ensure the protection and sustained growth of the accrued pension contributions of the Fund’s clients. In order to exercise abundant caution, the Board has spelt out a number of criteria that it expects potential bidders to satisfy. “Only non-state pension funds with the highest reliability rating, substantial assets, a stable and high level of income and a relevant record of accomplishment will be invited to a closed auction by bidding,” ALROSA emphasised.

The winner of the auction will be required to sign a shareholder agreement, stipulating that the Almaznaya Osen (Diamond Autumn) Fund cannot be liquidated or reorganised following the sale, and its shares cannot be sold to a third party; and further, ALROSA intends to retain    control over the most important decisions affecting the activities of the Fund as well as have representation on the Fund’s board.

“As was announced earlier, the disposal of ALROSA’s shares in the Fund will not affect the fulfilment of its obligations to its clients, the vast majority of them being current and former employees of ALROSA,” the Company stressed. “If the Fund’s owner changes, all the mandatory pension insurance and private pension agreements will remain in force, as required by the law.”

ALROSA owns 99.75% of the shares in JSC Almaznaya Osen (Diamond Autumn) Non-State Pension Fund, which was established in 2015 as a result of the reorganisation of Non-State Pension Fund Almaznaya Osen, which had been in operation since 1995.

The Fund, which is engaged in non-state pension provision and mandatory pension insurance activities, has five branches in Yakutia and one in Moscow. The Almaznaya Osen fund provides non-state pension provision services to nearly 29,000 clients and more than 34,700 of mandatory pension beneficiaries of the insurance.