Restrictions on Corporate Rights in 2 Subsidiaries

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	[e-mail]	[phone] [phone]
Tavistock:
Jos Simson	[e-mail]	[phone]
Gareth Tredway		[phone]

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.

 

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