Advanced Search

Russian Businessman Aims for ALROSA, BHP Diamond Asset Merger

May 28, 2012 6:16 AM   By Deena Taylor
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... Businessman Suleiman Kerimov is hoping to merge a prospective stake in ALROSA with BHP ‎Billiton’s diamond assets, Bloomberg reported quoting Moscow based Vedomosti.‎

The report indicated that Kerimov has urged the Russian government to offer 51 percent of ‎ALROSA under its asset sale program, merge it with BHP Billiton's diamond assets and hold a ‎public offering of shares in the combined company.‎

In March, ALROSA’s board advised a gradual sale of the state’s interest, starting with the sale ‎of a 14 percent stake in the miner.‎

Anton Averin, a spokesman for Kerimov’s Nafta Moskva investment company told Bloomberg ‎that the sale of a 51 percent stake in ALROSA make sense as the price would include a ‎premium for control, while selling smaller lots will benefit ALROSA’s management. Nafta ‎Moskva currently holds a 1 percent stake in ALROSA.‎

BHP Billiton announced in November 2011 that it intends to exit the diamond market as ‎the ‎industry does not fit its strategy to invest in large, long life, upstream and expandable ‎assets.‎

Separately, New York-based investment firm Kohlberg Kravis Roberts & Co. (KKR) has backed ‎away from the sale of BHP's Ekati mine valued at up to $2 billion, the Financial Times reported.  ‎
Tags: Alrosa, BHP Billiton, Deena Taylor
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.