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Deripaska's Rusal Sells AlPart of Jamaica to China's Jiuquan for $299M

Deripaska's Rusal Sells AlPart of Jamaica to China's Jiuquan for $299M

Forbes, and currently has a net worth valued at $3.3 billion. Rusal is the world’s second largest aluminum company. It was the largest until overtaken by China Hongqiao Group in 2015. UC Rusal accounts for nearly 9% of the world’s primary aluminum output and 9% of the world’s alumina production. The United Company Rusal was formed through the merger of Rusal, Sual, and the alumina assets of Swiss-based Glencore, completed in March 2007. The company operates in 19 countries over five continents and employs over 72,000 people. UC Rusal is incorporated in Jersey, where it has its financial center, and is headquartered in Moscow. Alpart is a large production complex in Jamaica, which uses its own bauxite mines to feed alumina production. Before the shut-down of Alpart from 2009 to 2015, annual production capacity of the complex was 1.65 million tonnes of cell-grade alumina and 4.9 million tonnes of bauxite. Rusal acquired a 65% stake in Alpart in 2007 as part of its merger with the alumina assets of Glencore, and acquired the remaining 35% stake in 2011. “We are very pleased with the achieved agreement,” said Rusal’s CEO Vladislav Soloviev. “The deal is of financial interest for us, in that it does not affect the vertically integrated production chain of the company. Eusal’s production facilities both in Russia and abroad fully satisfy the company’s alumina demand while the company-owned bauxite resources ensure our plants’ performance for the next 100 years and more. The deal also strengthens our relationship with our Chinese partners, opening new opportunities for the future co-operation in other areas.” The deal was undertaken under Rusal’s assets optimization and debt ratio reduction program, the company said. The deal has been approved by Rusal’s board of directors. The deal is also subject to approvals by the Government of Jamaica and a number of state bodies in China. After the closing, Jiuquan will become one of the top 10 producers of aluminum in China. Jiuquan Iron & Steel Co. was established in 1958 as a large-scale iron and steel producer, the first one strategically located in the North-West of China. Its products include wires and rods, rolled steel plates, and bars, with a production capacity of 8 million tons of crude and rolled steel annually. The company also has other business divisions including aluminum, electricity, and engineering technical services. Photo: Oleg Deripaska, Chairman and President of UC Rusal.]]>

Russia Sells 11% Stake in Diamond Producer Alrosa $ALRS for $820M

Russia Sells 11% Stake in Diamond Producer Alrosa $ALRS for $820M

Reuters on Saturday, as Moscow kickstarts a privatisation drive. A share issue by Alrosa — the world’s largest producer of rough diamonds in carat terms — is Russia’s largest privatisation in just under four years as the country seeks ways to bolster finances which have been hit by weak oil prices. According to the source close to the placement, the sale of a 10.9 percent stake was priced at 65 roubles per share, bringing in around $820 million. The Kommersant newspaper reported earlier this week that officials had been targeting an issue price of 71 roubles per share, citing unnamed sources. The pricing represents a discount of 3.8 percent to the closing price on Friday. Government officials and Alrosa were not immediately available for comment. It is not yet clear how much of the demand came from foreign institutional investors, who have largely shunned Russia since the country was hit by Western sanctions and slumping oil prices in 2014, depressing stock prices. Before the placement, the Vedomosti newspaper reported that the Russian Direct Investment Fund, a state-backed vehicle, would be an anchor investor. Other companies slated for privatisation this or next year include oil companies Rosneft and Bashneft, VTB bank and shipping company Sovkomflot. The $820 million raised from Alrosa’s sale compares with around $11 billion expected for the sale of a stake in Rosneft, which officials have said may be more difficult. Alrosa accounts for over a third of the world’s rough diamond production and it has the largest reserves. It reported record earnings in the first quarter as the market for diamonds used in jewellery and for industrial cutting tools and abrasives recovers. “We find Alrosa’s long-term story attractive,” analysts at Russian brokerage Aton said in a recent report. They said the stock benefits from a low enterprise value to earnings multiple of 4.3 compared with rivals and a dividend yield of around 10 percent (Reuters). The Russian Federation is the largest diamond-producing nation in the world. In October 2013, Alrosa, vying with De Beers for the mantle of the world’s largest diamond producer, made an IPO raising $1.3 billion. The Russian government and the Republic of Sakha (Yakutia) sold a combined 14% stake, in equal shares, while Alrosa offered about 2% in treasury stock. Buyers included U.S. asset management group Lazard and investment firms Capital, Highbridge, OppenheimerFunds and PIMCO, as well as a state-backed fund, the Russian Direct Investment Fund, or RDIF, whose mandate is to co-invest with private partners.]]>