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Ferrexpo majority shareholder sells 20.8%

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Date: Monday 06 Oct 2008

LONDON (ShareCast) - Ferrexpo said majority shareholder Fevamotinico has sold a 20.8% stake in the Ukraine-based miner to Czech coal producer New World Resources at 83p per share.

Following the sale Fevamotinico, which is run by Ukrainian billionaire Kostyantin Zhevago, will own 51% of Ferrexpo while RPGI, which is the majority shareholder of New World Resources (NWR), will own 20.8%.

“RPGI has offered to transfer the Ferrexpo Shares to NWR at cost (plus any related expenses),” said NWR.

The sale resulted from a loan agreement Fevamontinico had with JP Morgan, said Ferrexpo.

After the sale, "the loan will be fully discharged and Fevamotinico's remaining shareholding in Ferrexpo will be free of lien, security or other charges granted in favour of JPMorgan," it added.

Ferrexpo said it understands that Fevamotinico will remain the majority shareholder of the group.

“The sale has no bearing on Ferrexpo's business, which was and remains fundamentally sound,” it added.

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