ALROSA's Supervisory Board Approves Purchase Of 10% Of PJSC Alrosa Nyurba

(IDEX Online) – ALROSA's Supervisory Board in the course of absentee voting that took place on 21 March 2018 has considered and recognized the advisability of increasing share of ALROSA in share capital of PJSC Alrosa Nyurba up to 97.49 per cent.

Currently, ALROSA owns 87.48 per cent of Alrosa Nyurba's shares, 10 per cent belong to the JSC RIK-Plus owned by the Republic of Sakha (Yakutiya), the rest 2.523 per cent of shares are being owned of minority shareholders. Share of JSC RIK-Plus at the size of 10 per cent was included in forecasting plan of privatization of state property of the Republic of Sakha (Yakutia).

"Currently, ALROSA is holding negotiations with the management of the Republic of Sakha (Yakutia) on the opportunity of purchase of 10 per cent share of PJSC Alrosa Nyurba". We consider buyout of the stake in the company as a logical step on the way to consolidation of core upstream assets in the accounts of ALROSA and it will make positive impact on the company's operational efficiency and investment attractiveness. We are planning to close the deal in the first half-year of 2018, - says CEO of ALROSA Sergey Ivanov.

PJSC Alrosa-Nyurba was founded in 1997 for Nyurbin and Botuobin field development in Yakutiya. In 2017 a group of Nyurba fields (Nyurbin and Botuobin pipes and similarly-named deposits) secured production of 7.7 mln carat of rough diamonds or 19 per cent of total production volume of ALROSA Group.