(Alliance News) - Ferrexpo PLC on Tuesday said that Ukraine has imposed restrictions on some of its subsidiaries, as part of proceedings against the iron ore pellet producer's major shareholder Kostyantin Zhevago.
Ferrexpo said the "restrictions on certain corporate rights" affect all of its subsidiaries in Ukraine. They concern just under 50% of the shares in its Ukraine units, with exception of TIS-Ruda LLC and Nova Logistics LLC. For TIS, the restrictions affect just under 25% of the shares, and for Nova, just over 25%.
Ferrexpo explained: "The restrictions do not affect ownership of the shares but prohibit their transfer and restrict certain rights attached to the shares, including the right to vote. The group confirms that it has no intention, and never has had any intention of transferring shares in its subsidiaries.
"It is understood that the restrictions are part of an ongoing series of legal proceedings against Mr Kostyantin Zhevago relating to Bank Finance & Credit and are not related to the Ferrexpo group. The group is currently analysing the potential legal and other remedies available and intends to vigorously defend its rights."
Zhevago owns just shy of 50% of Ferrexpo. Zhevago stepped down from Ferrexpo's board in December 2022 after he was detained in France at the request of Ukrainian authorities. Ukraine's state bureau of investigation said the matter was in relation to money laundering and the disappearance of USD113 million.
At the time, he was a non-executive director. Zhevago had stepped down as Ferrexpo chief executive officer in 2019.
Ferrexpo shares fell 4.0% to 44.76 pence each in London on Tuesday morning.
By Eric Cunha, Alliance News news editor
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