Reference
This document was drafted and submitted by the Ministry of Economic Development in accordance with Clause 15 of Article 3 of the federal law On the Privatisation of State and Municipal Property and Clause 4 of Government Directive No 482-r of 30 March, 2013 in order to determine the procedure and terms for the compulsory sale of 515,547,593 federally-owned ALROSA shares accounting for 7% of the company’s statutory capital.
Experts have appraised the market value of ALROSA shares, and the report has been reviewed by a self-regulatory organisation of appraisers, the Russian Society of Appraisers ( RSA), an All-Russian public organization.
The Government has approved the sale of ALROSA shares through an initial public offering (IPO).
The directive sets the selling price of each share at 35 roubles. Shares will be sold for this price to underwriters for subsequent placement among investors in accordance with the order book and the number of shares, subject to compulsory purchase.
The directive also stipulates mandatory terms of a purchase contract, including a pledge to transfer shares only after they have been paid for in full, and after the revenue has been deposited in the accounts of the Federal Treasury.
The privatisation of these federally owned shares will make it possible to transfer additional privatisation revenue into the federal budget. This will also allow the company to enter the market and to change the corporate management model.