Ferrexpo shares tank on Ukraine mine nationalisation report

(Sharecast News) - Ferrexpo shares tanked on Thursday on a report that Ukrainian officials plan to nationalise the company's Poltava mining and processing plant amid allegations of illegal mining and fund misappropriation. The move is part of ongoing investigations into iron ore pellet producer Ferrexpo and main shareholder, Kostyantyn Zhevago. Shares in the company were down by 28% in afternoon trade on the London Stock Exchange.

The Ukrainian State Bureau of Investigations (SBI) is preparing to appeal to the High Anti-Corruption Court. This appeal seeks nationalisation due to findings that plant management allegedly misappropriated over 370 million hryvnias, the news agency Reuters reported.

Zhevago continues to deny these allegations amid ongoing legal proceedings.

Sharecast has contacted the SBI and Ferrexpo for comment.

Reporting by Frank Prenesti for Sharecast.com