NWR foregoes purchase of 24.99% stake in Ferrexpo

New World Resources board of directors decided not to acquire a 24.99% stake in Ferrexpo (FXPO LN) that it was offered by RPG Industries. NWR’s board cited the challenging environment in the coal and steel sectors. RPGI offered the stake to NWR for GBP 126.6 mln, following its acquisition of the stake in October 2008. NWR said that it would continue to cooperate with RPGI and Ferrexpo on strategic opportunities, and the NWR board confirmed an invitation to Ferrexpo CEO Konstantin Zhevago to join NWR’s board as a non-voting director (NWR shareholders are due to vote on the appointment at an AGM on April 28).