Ferrexpo to appeal against new court ruling freezing stake in unit

Ukrainian iron-ore producer Ferrexpo said it was appealing against a decision by a district court in Kyiv placing new restrictions on 50.3% of shares in its Ukraine subsidiary Ferrexpo Poltava Mining held by Ferrexpo AG Switzerland.

The company on Friday said the new court order was similar to that overturned on appeal on June 2.

“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,” it added.

Ferrexpo said it believed the new restriction was in connection with ongoing matters in Ukraine involving former chief executive Kostyantin Zhevago and one of the businesses he owned until 2015.

Zhevago is under investigation over alleged embezzlement from Bank Finance & Credit, a Ukrainian lender that he used to control. He has denied any wrongdoing.

The former politician, who owns just over 50% of the shares in the company, was opposed as a non-executive director by more than 32% of shareholders at its annual general meeting last month.

“Ferrexpo's operations remain unaffected as the share freeze does not affect ownership of the shares but prohibits their transfer. Furthermore, Ferrexpo AG has no intention, and never has had any intention, to transfer its shareholding in FPM,” the company said.