Ferrexpo plc (LON: FXPO) advised today that a Ukrainian court has placed a restriction covering 50.3% of the shares in Ferrexpo Poltava Mining (FPM) held by Ferrexpo AG Switzerland, the sole shareholder in FPM. Ferrexpo AG has appealed this court order.
The restriction does not affect ownership of the shares but prohibits their transfer. The Group believes this restriction is temporary and is in connection with ongoing matters in Ukraine involving Kostyantin Zhevago and one of the businesses he owned until 2015 (Bank Finance and Credit). Ferrexpo’s operations remain unaffected and continue as normal. Furthermore, Ferrexpo AG has no intention, and never has had any intention, to transfer its shareholding in FPM.
The Board of Ferrexpo believes that an appeal should be successful given the advice received that the order has no proper or reasonable basis under Ukrainian law.
Once the outcome of this appeal is known Ferrexpo will inform the market as appropriate.