FTSE 250 iron ore miner Ferrexpo has announced that their intention to move a long-running shareholder dispute from Ukrainian courts to the UK has been denied.
The dispute relates to the ownership of Ferrexpo Poltava, the iron ore deposit in central Ukraine. According to Reuters, the company believes it owns 98% of shares in the asset, while former shareholders led by Russian MP Alexander Babakov (known as Gilson and Co) say they own a 40% interest. This debate started back in 2005.
Ferrexpo AG, the group's Swiss subsidiary, launched legal proceedings against Gilson and Co in the UK High Court back in December in order to take an "active step outside the Ukraine" to resolve the dispute. It is thought that the Ukrainian courts are not neutral grounds.
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However, Ferrexpo announced on Wednesday morning that the judge has applied a 'stay or proceedings' in the UK while the case continues in Ukraine.
The board continues to believe, with legal advice, that the Ukrainian proceedings are "without merit".
BC
