31st Jan 2020 09:07
(Alliance News) - Iron ore pellet maker Ferrexpo PLC on Friday said a court in Ukraine has placed a restriction on its Swiss division's stake in Ferrexpo Poltava Mining.
Swiss unit Ferrexpo AG has appealed the court order. The FTSE 250 firm explained it is the sole shareholder in FPM, the subsidiary which operates in Poltava, a city in the central part Ukraine.
Ferrexpo added that its operations have been unaffected.
The firm said: "The restriction does not affect ownership of the shares but prohibits their transfer. The group believes this restriction is temporary."
Ferrexpo said the order is in relation to "ongoing matters" involving Chief Executive Kostyantin Zhevago, specifically Bank Finance and Credit, a commercial bank he owned until 2015.
Ferrexpo added: "Furthermore, 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."
Shares in the company were 1.9% lower at 137.75 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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