Billionaire Suleiman Kerimov has sold his stake in Alrosa, a month before the planned IPO of 16 percent of the diamond producer's shares, a news report said Monday.
The businessman may have owned from 1 to 2 percent of Alrosa, several unidentified sources told Vedomosti. The average cost of 1 percent of the company on the stock exchange was $81 million in 2013.
In the beginning of October Alrosa confirmed its plans to sell 16 percent of the company through an IPO.
The federal government and the republic of Sakha, formerly known as Yakutia, will each sell 7 percent of their shares while 2 more percent will be offered by the company itself.
The exact date of the IPO was not disclosed, but company president Fyodor Andreyev said earlier that the privatization of Alrosa could start in November.
A road show for the offering will take place on the Moscow Stock Exchange from Oct. 14 to 25, a source close to the deal told Kommersant. The deal could be closed between Oct. 28 and 31.
Alrosa hopes to raise about $1.3 billion from the deal, based on the price range set by the company at 35 to 38 rubles ($1.08 to $1.17) per share.
The government earlier planned to sell all of its 51 percent in Alrosa and Kerimov was said to be interested in acquiring the majority stake, but the state later decided against full privatization of the company.
Kerimov may have sold his stake in Alrosa because he either needed the money or was asked to do so, experts said.
Earlier news reports speculated that Kerimov might have been planning to sell or that he had already sold his other asset — a 21.75 percent stake in potash producer Uralkali. Speculation mounted after Uralkali triggered a dispute with Belarus following the break-up of its cartel with Belaruskali.
After the break-up was announced, Belarussian authorities arrested Uralkali's CEO, Vladislav Baumgertner, and charged him with abuse of office, which has been recently changed to theft.
News reports that Kerimov might sell his stake in Uralkali so far have not been confirmed.
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