Alrosa Continues to Unload Non-Core Assets

Mining and Exploration
08/05/2019 11:52

Continuing its its non-core, non-diamond-related assets disposal program, from January to March, Alrosa disposed of RUB 1.24 bn ($19 million) of its non-core assets by selling, liquidating, transferring without consideration or exchanging them, the company has announced in a statement. The most significant transaction included the sale of a 100% stake in JSC Golubaya Volna Resort, which was sold in February at an open auction for RUB 1.21 bn ($18.5 million), almost RUB 70 ($1.07 million) above its book value. “A total of 21 non-core assets were successfully disposed of in Q1 2019," said Konstantin Mashinsky, Deputy CEO of ALROSA, "including subsidiary equity stakes, residential and other real estate properties. The overall target for 2019 is to sell 90 non-core assets with a total book value of RUB 6 bn ($92 million)." 

In 2018, ALROSA sold its gas assets (Geotransgaz and Urengoy Gas Company) and a total of more than 250 properties, including real estate, construction-in-progress, housing stock and land plots. The proceeds from the assets sold in 2018 totaled over RUB 31 billion ($475 million). In December 2018, ALROSA’s Supervisory Board approved a new version of the Non-core assets disposal program, with more than 500 assets listed for disposal as per the special register. The non-core assets disposal program is expected to improve ALROSA’s financial performance and management practices, enabling the management team to focus on the company’s core diamond mining business, the company announced.