Media reports emanating from Moscow indicated that preparations are currently being made for the Russian Government to sell off 10.9% of its stock.

Russian media agency TASS reported yesterday: “Alrosa announced initiation of accelerated preparation of the bid book for participation in sale of 10.9% of its charter capital (802,781,254 ordinary shares) during the secondary public offering (SPO), the Russian diamond miner said on Wednesday.”

Earlier in the day, Minister of Economic Development Alexey Ulyukayev had confirmed the move, the agency said.

Currently, ALROSA’s shareholding pattern, as stated by the Company is as follows:  The Russian Federation, represented by the Federal Agency for Management of State Property holds 43.9256%; The Republic of Sakha (Yakutia), represented by the Ministry of Property and Land Relations of the Republic of Sakha (Yakutia) holds 25.0002%; Municipal district administrations of the Republic of Sakha (Yakutia) where ALROSA’s operations are located hold 8.0003%; Other free-floating legal entities and individuals hold 23.0739%. 

Ananlysts say that with the currently contemplated sale, the total free floating stock would go up to 24%.

"Furthermore, the Russian Federation Government will not take any further decisions on additional sales of Alrosa’s shares held in federal property within 180 days after announcement date of the offer price," Ulyukayev was quoted by TASS as saying.