UPDATE 1-Ukraine court rules in favour of Ferrexpo in 2002 share-repurchase case

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds shares, background) April 20 (Reuters) - Ukraine-focused pellet producer Ferrexpo Plc said on Thursday the Supreme Court in the country ruled in its favour in a case related to a share repurchase concluded in 2002, sending the company's shares 5.2% higher in early trade. Ferrexpo, which has all its operations in Ukraine, has faced multiple legal hurdles and taken a hit to its production due to logistical constraints and infrastructure damages arising out of Russia's invasion of the country. The claim brought by four claimants requested to invalidate an agreement in relation to the repurchase of about 40.2% of shares in the company's Ukraine subsidiary, Ferrexpo Poltava Mining (FPM) which was sold to its former CEO Kostyantin Zhevago and other parties.


Zhevago, Ferrexpo's largest shareholder was arrested in France last December on request of Ukraine in relation to embezzlement charges amidst President Zelenskiy's wider crackdown on oligarchs. The businessman, one of Ukraine's richest men, told the court he did nothing wrong and should not be extradited. A Ukraine appeal court had last year, declared the share buyback invalid and had asked the company to transfer those shares to former shareholders of FPM. Earlier this year, Ukraine had ordered freezing of FPM's bank accounts as a part of another ongoing probe related to the potential underpayment of iron ore royalties by the company.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Rashmi Aich)

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