Ferrexpo Purchases 60% Stake In Poltava GOK.

Ferrexpo, is a Swiss-registered managing company for Poltava GOK (PGOK: BUY) associated with PGOK’s key shareholders, Finance & Credit group. It exports pellets produced by Poltava GOK and makes financing and investment decisions for the company. After the acquisition of the 60% stake, Ferrexpo’s cumulative share in Poltava GOK now totals 76%, enough to make all decisions at AGMs. Concorde Capital: The consolidation of Poltava GOK with Ferrexpo corroborates our expectations that before going public on western stock exchanges, PGOK will combine its production and distribution into one company. The consolidation of 76% of the company’s shares will enhance the transparency of the company’s shareholder structure, which will make tapping capital markets easier for Poltava GOK. Ferrexpo plans to construct a new open pit on the  Eristovske iron ore deposit and build a plant for the production of directly reduced iron (DRI), an alternative for scrap steel in electric arc furnace (EAF) steel making technology. Poltava GOK exports 96% of its pellets, mostly to Eastern Europe, Austria, Italy, Russia and China.