No. 2 shareholder sells 11% of Ferrexpo at 110p/share
28 October 2016
Wilmore Street Investments, the second-largest shareholder in iron ore miner and pellet maker Ferrexpo (FXPO LN), announced on Oct. 28 it has sold 63 mln in ordinary shares, or a 10.7% stake in the company, Bloomberg News reported the same day. The deal price was 110 GBp/share, or a 14% discount to yesterday’s market close (GBp 127/share). The deal followed Wilmore’s announcement in the evening of Oct. 27 on its plans to sell about 70 mln of Ferrexpo shares.
Having sold 44% of its position, Wilmore Street’s stake in Ukraine’s largest exporter on iron pellets will decline to 13.2%. The company has agreed not to sell any more shares for 90 days after the sale’s completion. The company is a subsidiary of CERCL Holdings Ltd, a joint venture between the BXR Group and a Czech businessman, Zdenek Bakala.
Igor Zholonkivskyi: Ferrexpo shares plunged 18% in trading this morning, which will result in a short-term correction of its current rally in which it has surged almost 8.5x since December 2015 on the back of rising iron ore prices. The stock’s medium- to long-term outlook is more uncertain, partly because the sustainability of the recent recovery in the iron ore market remains in question. We think the downside risks for Ferrexpo stock are currently greater than the possible further upside potential.
