Ferrexpo cancels interim dividend

20th Feb 2024 13:08

(Sharecast News) - Iron ore pellet producer Ferrexpo said on Tuesday that it was cancelling its interim dividend just days before it was due to be paid out, following a claim against its Ukrainian subsidiary.

The company said it has decided not to go ahead with the 3.3 cents per share dividend following "unexpected" events in Ukraine relating to a claim against one of its subsidiaries, Ferrexpo Poltava Mining (FPM), which it disclosed at the end of last month.

Ferrexpo filed a cassation appeal to the Supreme Court in Ukraine on 30 January and an application to suspend enforcement of the decision of the Eastern Economic Court of Appeal in Kharkiv.

It said that until the Supreme Court has considered the application there is a risk of enforcement. However, Ferrexpo insisted the claims were "without merit" and said it had "compelling arguments" to vigorously defend its position.

"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."

At 1310 GMT, the shares were down 5% at 76.85p.