Ferrexpo To Sell Entire Stake In Ferrous Resources For USD41.8 Million

LONDON (Alliance News) - Ferrexpo PLC Thursday said it has agreed to sell its entire 15.51% stake ...

Alliance News 30 April, 2015 | 8:23AM
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LONDON (Alliance News) - Ferrexpo PLC Thursday said it has agreed to sell its entire 15.51% stake in Brazilian iron ore company Ferrous Resources Ltd for USD41.8 million in cash to IEP Ferrous Brazil.

Ferrous Resources has operating assets in the Minas Gerais region of Brazil. In 2014, the company produced 5.6 million tonnes of iron ore. In September, Ferrexpo fully impaired its investment in Ferrous, but Thursday said it expects to reverse the impairment if the deal goes through, meaning the entire cash consideration would be profit.

The impairment came after Ferrous reported a large pretax loss for the year ended September 30, 2014. Of its loss that year, Ferrexpo's share totalled a USD9.7 million loss which contributed to Ferrexpo's USD62.6 million pretax loss in the same year.

Ferrexpo said all the proceeds will be used for general corporate purposes. The deal must be approved by the Brazilian antitrust regulator.

Ferrexpo shares were up 5.7% to 82.25 pence per share on Thursday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Ferrexpo PLC 214.30 GBX 0.94 -
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