Shareholder Disclosure

RNS Number : 1239F

Ferrexpo PLC

06 October 2008

 



6 October 2008

Shareholder Disclosure

Ferrexpo plc ('Ferrexpo' or the 'Group') announces that on 6 October 2008 it was notified by Fevamotinico S.a r.l. ('Fevamotinico'), the Group's majority shareholder and a connected person of Kostyantin Zhevago that on 6 October 2008 122,364,280 ordinary shares in the share capital of Ferrexpo owned by Fevamotinico were transferred by JPMorgan Chase Bank N.A. ('JPMorgan'), at a price of 83 pence per share (the 'Sale'). Ferrexpo notes the announcement made this morning by RPG Industries SE ('RPGI') that RPGI acquired such shares. Ferrexpo understands that the Sale was effected under a power of sale pursuant to a charge granted in connection with Fevamotinico's loan from JPMorgan referred to in the Group's announcement dated 7 April 2008 (the 'Loan'), to which a waiver of Fevamotinico's IPO lock up has previously been given and publicly announced. Following settlement of the Sale, Fevamotinico and RPGI will hold 51.0% and 20.8% of Ferrexpo's issued share capital, respectively. RPGI is the majority shareholder in New World Resources NV. The Ferrexpo Board of Directors will convene to review these developments.

The Group understands that Fevamotinico will remain the majority shareholder of Ferrexpo, and has received confirmation from Fevamotinico that following and subject to the receipt by JPMorgan of payment for Fevamotinico’s 122,364,280 ordinary shares and the receipt by JPMorgan of the interim dividend on the Ferrexpo shares due to Fevamotinico declared on 28 August 2008 and due to be paid on 17 October 2008, the Loan will be fully discharged and Fevamotinico's remaining shareholding in Ferrexpo will be free of lien, security or other charges granted in favour of JPMorgan.

The Sale has no bearing on Ferrexpo's business, which was and remains fundamentally sound. The Group holds the licences to the largest iron ore deposit in Europe, with 6.5 billion tonnes of JORC-compliant resources. The Group realised price increases for its contracted iron ore pellets of more than 90% on average across all products and markets supplied by the Group as of 1 April 2008. These increased prices remain fixed until 31 March 2009. The Group also has significant growth prospects, and all growth projects to which the Board has committed remain on schedule, within budget and fully funded. The Group will publish an Interim Management Statement on 15 October 2008 in keeping with its established reporting schedule.

For further information, please contact:

Ferrexpo: [phone]

Gavin Mackay

Finsbury: [phone]

Robin Walker
Alex Simmons

Notes to Editors:

Ferrexpo is a Swiss headquartered resources Group with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes per annum, approximately 85% of which is exported to steelmakers around the world, and the Group is currently undertaking a significant growth programme. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.

 

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