REUTERS
The value of shares of the Swiss mining company Ferrexpo, which controls Poltava and Eristov mining and refining plants in Ukraine, has dropped by more than 15% on the London Stock Exchange after the National Bank of Ukraine had declared insolvent Finance and Credit Bank, where the largest shareholder of Ferrexpo, Ukrainian businessman Kostiantyn Zhevaho, had funds in the amount of $174 million.
In the first half hour of trading, the price per share fell to GBP 0.46, compared to the closing price at GBP 0.59 the day before, more than by 23%. The downward trend continues.
As UNIAN reported earlier, on September 17, the NBU declared Finance and Credit Bank insolvent after a long work on its financial restructuring, which resulted in the shareholder still not fulfilling its obligations.
As of September 16, Ferrexpo had available funds in the amount of $280 million, including $174 million in the Finance and Credit Bank. The company says that the NBU's decision has not yet affected financial transactions of Ferrexpo.
UNIAN memo. Ferrexpo AG is the largest producer and exporter of raw materials for the steel industry in the CIS region. The company's products are used at metallurgical plants in Europe, China, India, Japan and other countries.
The shares of Ferrexpo, the largest shareholder of which is the Ukrainian businessman Kostiantyn Zhevaho, are listed on the main market of the London Stock Exchange.
The net income of the company declined in 2014 by a third - to $183.8 million, against $263.8 million last year, the company report reads.