Disposal

RNS Number : 8022L

Ferrexpo PLC

30 April 2015

 

Ferrexpo plc

("Ferrexpo", the "Group" or the "Company")

Potential disposal of stake in Ferrous Resources Limited

Ferrexpo, the iron ore pellet producer, today announces that it has agreed to unconditionally tender for disposal its entire 15.51% stake in Ferrous Resources Limited ("Ferrous") to IEP Ferrous Brazil ("IEP") for a total cash consideration of US$41.8 million.

Ferrous is an iron ore production company with operating assets in the Minas Gerais region of Brazil. In 2014, Ferrous produced 5.6 million tonnes of iron ore.

The disposal is subject to the satisfaction of various conditions, including obtaining the approval of the Brazilian competition regulator, and there can be no guarantee that the disposal will be completed. 

As at 31 December 2014, Ferrexpo's share of Ferrous' gross assets comprised US$203.2 million (being 15.51% of Ferrous' gross assets of US$1,310.4 million). Ferrexpo's share of Ferrous' attributable losses before tax for the year ended 31 December 2014 was US$9.7 million (being 15.51% of Ferrous' losses before tax of US$62.6 million).

Ferrexpo fully impaired its investment in Ferrous as of 30 September 2014. If the transaction is completed, Ferrexpo would anticipate receiving cash proceeds of US$41.8 million, which would represent a profit (from the current fully impaired value) of US$41.8 million for the relevant period. Ferrexpo intends to use any proceeds for general corporate purposes.

For further information contact:

Ferrexpo:
Ingrid McMahon	[phone]
Maitland:
Peter Ogden	[phone]
Liz Morley

Notes to Editors:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It has been mining, processing and selling high quality iron ore pellets to the global steel industry for over 35 years. Ferrexpo's resource base is one of the largest iron ore deposits in the world. The Group is the 5th largest supplier of pellets to the global steel industry and the largest exporter of pellets from the CIS. In 2014, it produced a record 11 million tonnes of pellets, a 2% increase compared to 2013. Ferrexpo has a diversified customer base supplying steel mills in Austria, Slovakia, the Czech Republic, Germany and other European states, as well as in China, India, Japan, Taiwan and South Korea. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com

 

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