ALROSA took stock of the progress made in Q1 2019 on its non-core assets disposal programme. From January to March, the company was disposing of its non-core assets by selling, liquidating, transferring without consideration or exchanging them. As a result, 21 assets were disposed of for RUB 1.24 bn.
The most significant transaction included the sale of a 100% stake in JSC Golubaya Volna Resort. The stake was sold in February at an open auction for RUB 1.21 bn, almost RUB 70 m above its book value. At this time, the deal is already closed.
“A total of 21 non-core assets were successfully disposed of in Q1 2019, 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,” said Konstantin Mashinsky, Deputy CEO of ALROSA.
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 actual proceeds from the assets sold in 2018 totalled over RUB 31 bn.
In December 2018, ALROSA’s Supervisory Board approved a new version of the Non-core assets disposal programme, with more than 500 assets listed for disposal as per the special register.
The Non-core assets disposal programme 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.