ALROSA Repurchases Stake in Gas Assets

alrosaAs per an earlier agreement to buy-back the majority stake in Geotransgaz and Urengoyskaya Gaz Company, ALROSA purchased a 90 percent share in the gas assets on March 29 for $1.04 billion.

ALROSA held 90 percent share in the two gas assets once before, but in October 2009 it sold the stake back for $620 million under the condition it would repurchase the share if a third party didn’t come forward to buy.

Now, ALROSA terminated the option agreements with this repurchase of 90 percent share in the two companies, which was financed with cash and a new round of debt for $1.04 billion in two tranches. ALROSA intends to sell 50 percent plus one share in the gas assets this year and expects proceeds will repay part of the debt.

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