Ferrexpo PLC on Tuesday confirmed it has no intention to transfer its shareholding in Swiss subsidiary Ferrexpo AG, following recent press reports to the contrary.

Ferrexpo is a Swiss-headquartered iron ore pellet producer with operations in central Ukraine. Its shares were down 5.8% to 138.80 pence each in London on Tuesday afternoon.

It said it was aware of a press release by the Ukrainian Deposit Guarantee Fund suggesting that a restriction has been placed on shares held by Ferrexpo AG in the wider company’s three main operating subsidiaries in Ukraine, covering just over 50% of the shares held in each subsidiary.

Ferrexpo said the purported restriction, as referenced in the above press release, prohibits the transfer of the company’s shareholding in each named subsidiary.

However, it confirms it has no, and never has had, any intention of transferring the shares in such a way. It maintained that its operations were unaffected and remain within its control.

It added that it understands the restriction is part of an ongoing series of legal proceedings against Kostyantin Zhevago, relating to ongoing matters in Ukraine involving Zhevago and one of the businesses that he owned until 2015, Bank Finance and Credit.

In early February, Ferrexpo previously successfully appealed a similar share arrest/freeze action applied to the shares held by Ferrexpo AG in Ferrexpo Poltava Mining.

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