Ferrexpo says no intention of transferring shareholding in Swiss subsidiary

Ferrexpo said on Tuesday that it has no intention of transferring its shareholding in Swiss subsidiary Ferrexpo AG.

Responding to a press report, the iron ore pellet producer said it was aware of a press release by the Ukrainian Deposit Guarantee Fund suggesting that a restriction had been placed on shares held by its Swiss subsidiary in its three main operating subsidiaries in Ukraine, covering just over 50% of the shares held in each subsidiary.

It said the purported restriction, as referenced in the press release, prohibits the transfer of the company's shareholding in each named subsidiary. "The company can confirm that it has no intention, and never has had any intention, of transferring the shares referenced above," it said.

Ferrexpo continued: "The company understands that the aforementioned restriction is part of an ongoing series of legal proceedings against Mr Kostyantin Zhevago and relates to ongoing matters in Ukraine involving Mr Zhevago and one of the businesses that he owned until 2015 (Bank Finance and Credit).

"In any event, the company has previously successfully appealed a similar share arrest (freeze) action applied to the shares held by Ferrexpo AG in Ferrexpo Poltava Mining."

Ferrexpo said it operations remain unaffected and within its control.

The shares closed down 0.6% at 146.38p, having fallen to as low as 138.38p earlier in the session.