New World Resources considers acquisition of 25%+1 stake in Ferrexpo

NWR would pay RPGI 86 pence per share in cash, for a total consideration of GBP 126.6 mln (USD 220.4 mln). NWR could receive Ferrexpo board representation, and offer Ferrexpo a seat on its own board. On October 6 RPGI announced it bought a 20.8% stake in Ferrexpo from majority shareholder Fevamotinico, which is related to Ukrainian billionaire Konstantin Zhevago. Eugene Cherviachenko: Fevamotinico sold the stake to fulfil a margin call from JPMorgan (see our flash note of October 20). NWR will convene an EGM to seek approval for the transaction; only unrelated shareholders will be eligible to vote on the proposed deal.