Ferrexpo says Ukraine court approves state takeover of stake in mining unit

(Sharecast News) - Ferrexpo said a Ukrainian district court had granted a request from prosecutors to transfer 49.5% of its mining unit to the state ownership in relation to an embezzlement case. The company, which makes iron ore pellets for the steel industry, said it had not seen a copy of the decision from the Pecherskyi District Court of Kyiv

"The details of the court decision are therefore unclear at this stage and the company is working with its legal advisors to further understand the situation," Ferrexpo said on Wednesday.

Ukrainian authorities have been investigating alleged embezzlement of funds from Bank Finance & Credit, a Ukrainian bank previously owned by Kostyantyn Zhevago which was declared insolvent in 2015. Zhevago, who was arrested in absentia in July 2024.

Ferrexpo said Zhevago does not own any shares in Ferrexpo Poltava Mining, ultimately owned by the UK-listed entity - in which he has a 49% stake.

"No Ferrexpo group company has received any official documentation or requests from the Ukrainian authorities with regards to the decision ... and have not seen a copy of the court decision. The operations of the group remain unaffected," it added.

The lawsuit seeks to transfer 49.5% of Poltava Mining and its assets to state ownership, including 541 properties, 172 land plots, and more than 2,300 railway cars with tracks.

Reporting by Frank Prenesti for Sharecast.com