Ferrexpo No. 2 shareholder sells 13.8% stake at 129 GBp/share

Wilmore Street Investments, the second-largest shareholder in iron ore miner and pellet producer Ferrexpo (FXPO LN, FXPOLN), has sold 78 mln in ordinary shares (a 13.8% stake in the company) and fully liquidated its position in Ferrexpo, Bloomberg News reported on Jan. 26. The deal, priced at 129 GBp/share, was closed at an 8% discount to yesterday’s market close (140 GBp/share).

Wilmore Street is a subsidiary of CERCL Holdings Ltd., a joint venture between the BXR Group and Czech businessman Zdenek Bakala. It was the second placement of Ferrexpo shares by Wilmore Street. The first placement occurred on Oct. 28, 2016, when the company sold a 10.7% stake at 110 GBp/share.

Andriy Perederey: Ferrexpo shares have already fallen 4.2% to 134.2 GBp/share by 8:24 in London trading this morning. It was the second-largest drop since mid-December, when Ferrexpo shares slid 6.2%. But we expect the shares will recover in the next few weeks.

The share price will be driven by healthy iron ore prices and a stable operating performance. However, seeing the risk of another dip in iron ore prices in mid-2017, we are keeping our netural view on Ferrexpo stock.