RNS Number : 6916A
OJSC Magnitogorsk Iron &Steel Works
03 April 2012
Open Join Stock Company Magnitogorsk Iron and Steel Works
Chelyabinsk arbitration court issued an order restraining MMK
from implementing MMK Board of Directors' Resolutions
with respect to acquisition of Flinders Mines Limited
April 3, 2012 Magnitogorsk, Russian Federation
Open Joint Stock Company Magnitogorsk Iron and Steel Works (OJSC MMK) announced that on April 2, 2012 it was notified that a minority shareholder of OJSC MMK, Ms. Elena Egorova, brought an action to the Arbitration Court of Chelyabinsk Region (city of Chelyabinsk, Russian Federation) on March 29, 2012 challenging the legitimacy of the OJSC MMK Board of Directors' resolutions with respect to the acquisition of 100 percent stake in Flinders Mines Limited. The plaintiff argues that this transaction discriminates against her interests as a shareholder since this deal will, allegedly, lead to financial and operational risks for OJSC MMK and therefore adversely affect the plaintiff's investments in MMK shares.
As a result, on March 30, 2012 the Arbitration Court of Chelyabinsk Region issued an injunctive relief order restraining MMK from implementing MMK Board of Directors' resolutions with respect to the acquisition of 100 percent stake in Flinders Mines Limited.
OJSC MMK has notified Flinders Mines Limited of the court's order. The parties are currently in the process of jointly assessing the above circumstances and their probable consequences.
OJSC MMK officially states that in the course of implementation of the transaction to acquire 100 percent of Flinders Mines Limited shares, OJSC MMK has been acting in full conformity with applicable laws and regards the plaintiff's action as ungrounded.
OJSC MMK Communications Department
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