Total Return Swap

RNS Number : 1922B

Ferrexpo PLC

21 October 2009

 



21 October 2009

Ferrexpo plc

Total Return Swap

Ferrexpo plc ("Ferrexpo") announces today that it has been informed by RPG Industries SE ("RPGI") that its wholly-owned subsidiary Wigmore Street Investments No.3 Limited ("Wigmore") has sold 70,500,000 Ferrexpo shares, equal to approximately 12% of the issued share capital, to J.P. Morgan Securities Ltd., Citigroup Global Markets U.K. Equity Ltd and Morgan Stanley & Co International plc in equal proportions, and has entered into Total Return Swap ("TRS") transactions with those institutions in respect of those shares. The TRS transactions have an average term of three years and provide Wigmore the right to elect to receive Ferrexpo shares in settlement of the swap at maturity (physical settlement).

Following the transactions RPGI continues to have full economic exposure over 25% minus one share of Ferrexpo's outstanding share capital. Ferrexpo and RPGI enjoy a good working relationship which remains unchanged by these transactions. Miklos Salamon and Marek Jelinek will continue to serve as non-executive directors of Ferrexpo.

Ferrexpo is of the view that the transactions restore the proportion of Ferrexpo shares in public hands to approximately 25%, in line with LR9.2.15 of the Listing Rules.

For further information, please contact:

Ferrexpo:                                                 [phone]
Gavin Mackay

Pelham PR                                              [phone] 

Evgeniy Chuikov

James Henderson

Notes to Editors:

Ferrexpo is a Swiss headquartered resources company 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, most of which is exported to steelmakers around the world. 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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