By mid-Thursday, July 7, investors sent 100% of the minimum volume of bids, said a source familiar with the transaction, and confirmed a financier who knows about this from one of the organizers of the placement. He said that applications continue to be received and the organizers are VTB Capital and Sberbank CIB — the book will be closed on Friday evening.
“Prices yet. Probably, it will report on Friday,” said a representative of one of investment funds participating in the placement of ALROSA. The book was actually completed on Wednesday evening, but the organizers are waiting for applications from large investors, including the FUND, says one financier, who learned this information from the organizers.
It started offering a 10.9% stake in diamond mining company, on Wednesday said the Minister of economic development Alexei Ulyukayev. The offering will be held in the format of an accelerated bookbuild, the report said ALROSA on the website disclosure. According to the financier, received a proposal to participate in the placement from the organizers, the transaction could take place early next week — on July 11-12. Heard about it and a top Manager of a large pension Fund.
Anchor investor placement can become RDIF, said on Monday “Interfax” with reference to its source and confirmed two people familiar with the process of accommodation. The Fund can provide more than half of the volume of placement, said one of them. According to sources , the share of the FUND will be substantially lower than the package that will go to his co-investors in Asian and middle Eastern funds. The representative of the Russian direct investment FUND does not comment on it.
Your interest in participating in the privatization of several major confirmed the NPF, including funds, included in the group Boris mints, NPF of Sberbank, NPF VTB and the funds that are included in the pension group “Safmar” Mikhail Gutseriev and Mikhail Shishkhanov. Funds with minority stakes in ALROSA — Oppenheimer, Genesis and Lazard — are also going to participate in the placement, wrote on Monday, “Kommersant” citing its sources. The publication claimed that the three funds ready to buy shares for $150 million each, i.e. 1.84 percent of ALROSA. One of the interviewees also confirmed that “among the customers, a lot of foreign funds”.
Wednesday at the close of trading on the Moscow exchange one share of ALROSA cost to 68.7 RUB, capitalization amounted to 506 billion rubles. Thus, the market price of 10.9% of the company, which intends to privatize the state, at 55.2 billion rubles.
Investors expect a discount to the current price of ALROSA shares is 7-10%. During the preliminary collection of applications Western funds requested discount of 10% to the market price, the Russian investors — the discount of 7.5%, said a banker familiar with the course of the placement. However, another banker said the discount on current applications is 5-7%.
ALROSA is the largest diamond mining company in the world in terms of mined rough diamonds (30% of the world market). Shareholders: Rosimushchestvo (43,9%), the Ministry of property of Yakutia (25%), Sakha (8%). Revenue — 224,5 billion rubles., net profit — RUB 32.3 billion EBITDA Margin was 53%. The ratio of net debt to EBITDA of 1.7 (IFRS, 2015).
From the privatization of state expects to gain “more than 50 billion rubles”, said in the end of may, Deputy Finance Minister Alexei Moiseev. Accommodation, according to him, must pass on the Moscow exchange. The proceeds will be used to Finance budget spending, the report said ALROSA. Within six months, the government will not make any decisions on additional sales of state-owned shares state-owned company.
ALROSA representative declined to comment.