YAKUTSK, February 26 (RIA Novosti, Pyotr Vasilyev) - Russia's biggest rough diamond producer Alrosa is repurchasing shares from minority shareholders at $12,000 per share, the company's press office said Sunday. Alrosa is buying minority stakes in the interests of the government of Russia and the government of the republic of Sakha (Yakutia), which are the company's key shareholders, the press office said.
"This effort is the direct result of agreements reached between the governments of Russia and the republic of Sakha (Yakutia), and also interested ministries to fulfil the Russian president's instruction on measures to protect state property in the diamond sector of Sakha (Yakutia), the press office said.
Alrosa said it was purchasing shares exclusively through its subsidiary bank, MAK-bank, and the purchase would last until April 28, 2006 inclusive.
President of Sakha (Yakutia) Vyacheslav Shtyrov said the company's board had defined the purchase price at $12,000 per share compared to the nominal value of 13,500 rubles (about $478) per share.
Shtyrov also said the share repurchase would compensate for the shortfall of revenues in the republican budget and allow the governments of Russia and Sakha (Yakutia) to increase their stakes in Alrosa to the desired level.
Economic Development and Trade Minister German Gref earlier said Alrosa would buy out shares from its personnel to increase the Russian government's stake to a controlling interest.
Alrosa's personnel currently hold 23% of the company's shares.
