Alrosa to sell 51% shares of GMK “Timir” to Evraz

“ALROSA” and Evraz Plc. have signed an agreement on a sale of a controlling stake of OJSC “GMK “Timir” to Evraz. The deal is valued at 4.95 billion roubles (appr. $160 million). It will be paid out in multiple tranche. EVRAZ Plc. will own 51% shares of GMK “Timir”, while ALROSA – 49% minus 1 share, Vnesheconombank – 1 share. Earlier in September 2012, the deal has been approved by the Supervisory Board of “ALROSA”. “Represented by EVRAZ the project “Timir” got a strategic investor, which has an experience in iron ore production and processing. An appearance of a partner like EVRAZ will contribute to a development of GMK “Timir”. “ALROSA”, for its part, will keep participating at the project, in particular, investments into the development of the deposits in accordance with the share in the capital,” the president of ALROSA F.Andreev said.