Ferrexpo unit shares restricted by Ukrainian court
A Ukrainian court has placed a restriction on the sale of a 50.3% stake by Ferrexpo's Swiss unit in Poltava Mining as investigations deepen into its former chief executive.
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The iron ore pellet producer on Friday said it believed the restriction was temporary and in connection with ongoing matters in Ukraine involving former chief executive Kostyantin Zhevago, who was under investigation after allegations of money laundering and embezzlement, and Bank Finance and Credit - one of the businesses he owned until 2015.
The FTSE 250-listed firm said that Ferrexpo AG Switzerland, the sole shareholder in FPM, had already launched an appeal against the court order, which did not affect ownership of the shares and only prohibited their transfer.
Ferrexpo said its operations remained unaffected and continued to function "as normal", noting it had 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," said the group.
"Once the outcome of this appeal is known Ferrexpo will inform the market as appropriate."
As of 0845 GMT, Ferrexpo shares were down 2.67% at 136.64p.