REG - Ferrexpo plc - Restrictions on Corporate Rights in 2 Subsidiaries

FerrexpoAnnouncement

21/09/2023 07:00

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RNS Number : 1354N  Ferrexpo PLC  21 September 2023

21 September 2023

Ferrexpo plc

("Ferrexpo" or the "Group")

 

Restrictions on certain corporate rights in two Ukrainian subsidiaries

Ferrexpo plc (LSE: FXPO), a premium iron ore pellet supplier to the global
steel industry, announces that two Ukrainian subsidiaries of the Company,
Ferrexpo Yeristovo Mining and Ferrexpo Belanovo Mining ("FYM" and "FBM"
respectively), have received documents from the Department of State
Enforcement Service of the Ministry of Justice of Ukraine (the "State
Enforcement Service") which place restrictions (known as an "arrest" in
Ukrainian) on certain corporate rights relating to 50.3% of the shares held by
Ferrexpo's Swiss subsidiary (Ferrexpo AG) in each of FYM and FBM (the
"Restrictions"). The Restrictions prohibit the transfer of 50.3% of the shares
held by Ferrexpo AG in FYM and FBM, but do not otherwise affect Ferrexpo AG's
ownership of the shares including its entitlement to exercise voting rights or
receive dividends on the shares.

The Group can confirm that it has no intention, and never has had any
intention, of transferring the shares referenced above.

It is understood that the Restrictions are part of an ongoing series of legal
proceedings against Mr Kostyantin Zhevago relating to Bank Finance &
Credit and not related to the Ferrexpo Group. The Restrictions have been made
as an initial stage in the enforcement process to satisfy a judgment debt owed
by Mr Zhevago to the National Bank of Ukraine in the amount of approximately
US$44 million.

Based on Ukrainian legal advice obtained by Ferrexpo, the issue of the
Restrictions in relation to 50.3% of the shares in FYM and FBM is unlawful,
having been made contrary to Ukrainian law on a number of grounds, notably
that the shares in FYM and FBM are wholly owned by the Ferrexpo Group and not
any other person as a matter of Ukrainian law.  The Group is currently
analysing the potential legal and other remedies available to it and intends
to defend its rights.  If the enforcement process pursuant to which the
Restrictions have been issued is not interrupted, this could ultimately lead
to a potential sale of shares representing 50.3% of the issued shares in each
of FYM and FBM.

Ferrexpo's operations remain unaffected.  A further announcement will be made
as appropriate.

Previously announced share freeze

The Restrictions are separate to those under the arrest previously announced
by the Group on 7 March 2023, and expanded on in the Group's interim results
for the six months ended 30 June 2023, pursuant to which the Kyiv Commercial
Court ordered the arrest (freeze) of 50.3% of Ferrexpo AG's shareholding in
FYM and FBM and also 50.3% of the shareholding in a third Ukrainian
subsidiary, Ferrexpo Poltava Mining (the "Court Arrest").

Following the Group's unsuccessful appeal to the Northern Commercial Court of
Appeal to remove the restrictions under the Court Arrest, the Group has made
an appeal to the Supreme Court of Ukraine which remains on-going.

This announcement contains inside information. The person responsible for the
release of this announcement is Mark Gregory, Group Company Secretary.

 

For further information please contact:

 Ferrexpo:
 Nick Bias       n.bias@ferrexpo.ch        +44 (0)20 7389 8305

                                           +44 (0)7733 177 831
 Tavistock:
 Jos Simson      ferrexpo@tavistock.co.uk  +44 (0)20 7920 3150
 Gareth Tredway                            +44 (0)7785 974 264

 

About Ferrexpo:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and
a premium listing on the London Stock Exchange in the FTSE 250 index (ticker
FXPO). The Group produces high-grade iron ore pellets, which are a premium
product for the global steel industry and enable reduced carbon emissions and
increased productivity for steelmakers when the Group's iron ore pellets are
converted into steel, compared to more commonly traded forms of iron ore.
Ferrexpo's operations have been supplying the global steel industry for over
50 years. Before Russia's invasion of Ukraine in February 2022, the Group was
the world's third largest exporter of pellets to the global steel industry.
The Group has a customer base comprising of premium steel mills around the
world. For further information, please visit www.ferrexpo.com
(http://www.ferrexpo.com/) .

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