Ferrexpo PLC Disposal (8022L)
30 April 2015 - 8:02AM
UK Regulatory
TIDMFXPO
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 +44 207 389 8304
Maitland:
Peter Ogden +44 207 379 5151
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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