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Brexit Could Delay ALROSA Privatization
Jun 29, 2016 4:23 AM
By Rapaport News
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RAPAPORT... The fallout from the U.K.’s decision to leave the European
Union (EU) may affect the timing of Russia’s privatization of ALROSA, according
to Sberbank CIB, the bank organizing the sale of shares.
The sale of a 10.9-percent stake in the diamond miner,
scheduled for July, is expected
to add $934 million (RUB 60 billion) to Russia’s coffers.
“Theoretically, Brexit could impact the timing of
privatization if market conditions deteriorate,” Sberbank said in a statement
to Rapaport News. “So far, no changes have been introduced to the plans
to conduct a deal with ALROSA in July. There is considerable demand from
Russian and foreign investors.”
The result of Britain’s referendum vote to cede from the EU
– dubbed ‘Brexit’ – has sent European and global markets into turmoil with global
equities losing about $3.6 trillion in market value since the decision,
Bloomberg reported Tuesday.
The FTSE 100 was down 2.7 percent at the time of writing
since early indications of the result came in Thursday night, according to Yahoo
Finance. The pound slumped to a 30-year low against the dollar and the euro has
fallen more about 3 percent relative to the U.S. currency. Gold prices surged
as investors sought safe havens.
Last week Russian economy minister Alexei Ulyukayev said he
did not think Brexit would influence Russia's privatization program, according
to a Reuters report citing Russian news agencies.
Russia's government also plans to sell part of its
shares in oil companies Rosneft and Bashneft as well as VTB Bank.
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Tags:
Alrosa, ALROSA privatization, Brexit, mining, privatization, Rapaport News, Russia, u.k.
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