Ferrexpo key shareholders to sell 1.7% of stake

The majority shareholder of Ferrexpo (FXPO LN) – Kostyantyn Zhevago’s Fevamotinico S.a.r.L. that owns a 51.0% interest in the company – will reduce its stake by 0.7% to 50.3%, Ferrexpo reported on Dec. 18. Its second-largest shareholder, BXR, will also reduce its ownership, selling shares to the market (up to 1%) in order to increase Ferrexpo’s total free float by 1.7% to 25.0%, thus complying with new exchange rules that take effect in March 2014.

Roman Topolyuk: The sale of the 1.7% interest stake will have a minor effect on the share price, but will improve the company’s corporate governance practices. The move is the result of changing rules at the LSE to enhance the rights of minority shareholders, which include their increased participation in management with separate shareholder agreements between controlling and independent shareholders. The latter will be given the right to vote for an independent director at elections, which should be approved both by all controlling and independent shareholders, as a separate class.