19th Jun 2020 08:55
(Alliance News) - Ferrexpo PLC on Friday said a district court in Kiev, Ukraine, has prohibited the transfer of the company's 50% stake in Ferrexpo Poltava Mining.
The Kyiv court has placed the restriction on Ferrexpo AG Switzerland, the sole shareholder in Ferrexpo Poltava Mining. Ferrexpo AG intends to appeal against the court order.
Shares in Ferrexpo were down 3.3% at 183.70 pence each in London.
The Baar, Switzerland-based commodity trader and iron ore mining company clarified that it has no intention, and never has had any intention, to transfer its shareholding in Ferrexpo Poltava Mining, the company's iron ore unit in Ukraine.
Ferrexpo's operations remain unaffected as the share freeze does not affect ownership of the shares but prohibits their transfer.
The company believes the restriction is in connection with ongoing matters in Ukraine involving former chief executive Kostyantin Zhevago and Bank Finance & Credit, a commercial bank he owned until 2015.
At the end of October 2019, Zhevago temporarily stepped down as CEO, remaining as a non-executive director. Bloomberg earlier that month had reported that Ukrainian investigators were looking for him over "large-scale" money laundering and embezzlement accusations.
Last month, Chief Operating Officer James North was named acting chief executive, replacing in that role Chief Financial Officer Chris Mawe, who reverted to CFO.
"The new court order is similar to the court order that the group announced on January 31, 2020, and that was subsequently cancelled by the Kyiv Court of Appeal on June 2, 2020. As such, the board of Ferrexpo believes that a second appeal should be successful given that the order has no proper or reasonable basis under Ukrainian law," Ferrexpo said on Fridayferrex.
By Tapan Panchal; [email protected]
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