3rd Jun 2020 10:44
(Alliance News) - Ferrexpo PLC on Wednesday said the Kiev Court of Appeal in Ukraine has cancelled the restriction on a controlling stake in local operating subsidiary Ferrexpo Poltava Mining.
The Swiss-headquartered iron producer said the court cancelled the restriction on 50.3% of the shares held by Ferrexpo AG Switzerland. As the highest court ruling in the case, the decision represents the final stage of the appeals process, Ferrexpo noted.
In January, Ferrexpo said a court in Ukraine placed the restriction in relation to "ongoing matters" involving Chief Executive Kostyantin Zhevago, specifically Bank Finance & Credit, a commercial bank he owned until 2015.
At the time, the firm explained it is the sole shareholder in FPM, the subsidiary which operates in Poltava, a city in the central part Ukraine.
"Ferrexpo AG has no intention, and never has had any intention, to transfer its shareholding in FPM. The board of Ferrexpo believes that an appeal should be successful given the advice received that the order has no proper or reasonable basis under Ukrainian law," the company added.
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.
Ferrexpo shares were trading 0.7% lower at 184.54 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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