The FINANCIAL – According to KievPost, Ihor Kolomoisky, who controls Ukraine's largest bank, Dnipropetrovsk-based PrivatBank, has sold 11.552 million shares in ore-mining company Ferrexpo plc, cutting his direct share in the company to 4.9267%, reads a Ferrexpo report issued on Thursday.
PrivatBank is a 75% shareholder of TaoPrivatank in Tbilisi.
The report says that an agreement on joint voting with Ferrexpo's shares has been signed between Ralkon Commercial Limited, which is 100% owned by Kolomoisky, and Fayver Properties Inc., which is under 100% control of Kolomoisky's partner in PrivatBank, Hennadiy Boholiubov.
Their common stake now is estimated at 8.3625%, while as of early March the said shareholders in Ferrexpo controlled over 10% in Ferrexpo.
The company also said that RPG Industries SE – a wholly-owned subsidiary Wigmore Street Investments No.3 Limited – has sold 70,500,000 Ferrexpo shares, equal to approximately 12% of the issued share capital, to J.P. Morgan Securities Ltd., Citigroup Global Markets U.K. Equity Ltd and Morgan Stanley & Co International plc in equal proportions, and has entered into Total Return Swap transactions with those institutions in respect to those shares. The TRS transactions have an average term of three years and provide Wigmore the right to choose to receive Ferrexpo shares in settlement of the swap at maturity (physical settlement).
Following the transactions, RPGI continues to have full economic exposure over 25% minus one share of Ferrexpo's outstanding share capital. Ferrexpo and RPGI enjoy a good working relationship which remains unchanged by these transactions, reads the report.
The reprot says that Ferrexpo is of the view that the transactions restore the proportion of Ferrexpo shares in public hands to approximately 25%.
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