Business
Restrictions on Corporate Rights in 2 Subsidiaries
Restrictions on Corporate Rights in 2 Subsidiaries.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n\n21 September 2023\nFerrexpo plc\n(\"Ferrexpo\" or the \"Group\")\n \nRestrictions on certain corporate rights in two Ukrainian subsidiaries\nFerrexpo plc (LSE: FXPO), a premium iron ore pellet supplier to the global steel industry, announces that two Ukrainian subsidiaries of the Company, Ferrexpo Yeristovo Mining and Ferrexpo Belanovo Mining (\"FYM\" and \"FBM\" respectively), have received documents from the Department of State Enforcement Service of the Ministry of Justice of Ukraine (the \"State Enforcement Service\") which place restrictions (known as an \"arrest\" in Ukrainian) on certain corporate rights relating to 50.3% of the shares held by Ferrexpo's Swiss subsidiary (Ferrexpo AG) in each of FYM and FBM (the \"Restrictions\"). The Restrictions prohibit the transfer of 50.3% of the shares held by Ferrexpo AG in FYM and FBM, but do not otherwise affect Ferrexpo AG's ownership of the shares including its entitlement to exercise voting rights or receive dividends on the shares.\nThe Group can confirm that it has no intention, and never has had any intention, of transferring the shares referenced above.\nIt is understood that the Restrictions are part of an ongoing series of legal proceedings against Mr Kostyantin Zhevago relating to Bank Finance & Credit and not related to the Ferrexpo Group. The Restrictions have been made as an initial stage in the enforcement process to satisfy a judgment debt owed by Mr Zhevago to the National Bank of Ukraine in the amount of approximately US$44 million.\nBased on Ukrainian legal advice obtained by Ferrexpo, the issue of the Restrictions in relation to 50.3% of the shares in FYM and FBM is unlawful, having been made contrary to Ukrainian law on a number of grounds, notably that the shares in FYM and FBM are wholly owned by the Ferrexpo Group and not any other person as a matter of Ukrainian law. The Group is currently analysing the potential legal and other remedies available to it and intends to defend its rights. If the enforcement process pursuant to which the Restrictions have been issued is not interrupted, this could ultimately lead to a potential sale of shares representing 50.3% of the issued shares in each of FYM and FBM.\nFerrexpo's operations remain unaffected. A further announcement will be made as appropriate.\nPreviously announced share fre...