IN A STATEMENT on the London Stock Exchange late yesterday morning, the FTSE 250-listed firm said the 3.3 cents per share dividend will not be paid on 23 February as a claim against one of Ferrexpo's subsidiaries, Ferrexpo Poltava Mining (FPM) remains active.

The statement read: "The board has reconsidered the interim dividend and decided to withdraw it. The board aims to resume its focus on shareholder returns at the appropriate time."

The $125m (£98m) claim relates to money that is said to be owed to an unnamed creditor by Kostyantyn Zhevago, a Ukrainian billionaire and former owner of Ferrexpo.

On 30 January, Ferrexpo filed a cessation appeal to the Supreme Court in Ukraine and an application to kill the case.

However, the company said: "Until the Supreme Court has considered the application there is a possible risk of enforcement, however, Ferrexpo is of the view that these claims are without merit and Ferrexpo has compelling arguments to vigorously defend its position."

The claimant's action alleges that Zhevago, who remains in France since his arrest at the Courchevel ski resort in December 2022, misappropriated funds from the now-liquidated Finances and Credit Bank, which he also owned.

Finances and Credit Bank was founded in 1990 and, by the size of assets, it was considered one of the largest banks of Ukraine according to classification by the National Bank of Ukraine.

On 17 December 2016 the National Bank of Ukraine withdrew the banking licence of Finance and Credit and liquidated the bank.

The company is also facing several court cases or investigations by Ukrainian authorities trying to recover assets from Zhevago.

As per the statement, shareholders will be hoping that Ferrexpo's board will consider "returns at the appropriate time."

A spokesperson for the company declined to comment further.

The company's shares have fallen 48 per cent in the last year and closed down 6.30 per cent yesterday following the news.

(c) 2024 City A.M., source Newspaper