Ferrexpo concentrates 100% of PGOK shares

Ferrexpo Poltava Mining (FPM, PGOK UZ), the main Ukrainian
production asset of Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO
LN), announced in a June 20 regulatory release that Ferrexpo AG had accumulated
100% of FPM’s shares. The increase of Ferrexpo AG’s stake from the previous
99.11% was the result of a squeeze out, according to the release.

Recall, on May 20 FPM announced that the
price for Ferrexpo AG’s squeeze out of FPM’s minority shareholders will be UAH
34.24 (USD 1.31) per share.

Dmytro Khoroshun: The squeeze
out will be positive for Ferrexpo because it improves corporate governance by
eliminating the bureaucratic burden and legal risks attached to the current
quasi-public status of most Ukrainian companies, including FPM.

The squeeze out was also cheap for Ferrexpo because
it acquired FPM’s shares at a 1.3x P/E multiple (using 2018 net income).