29 January 2017
According to announcement of Ferrexpo second-largest shareholder of the company fully liquidated its position in Ukrainian iron ore pellets producer on January 26.
Till the end of October 2016 Wigmore owned 24% of Ferrexpo shares, on October 28 it was announced that it sold part of its stock to institutional investors, decreasing its stake to 13.2%. After 90 days of waiting period (during which it was obliged not to sell its stocks) passed, Wigmore decided to sell remaining portion of its stake.
Deal price made GBP 129 per share, which was at approximately last week’s close level, but lower than was the price as of date of deal announcement (GBP 140 per share). Right after announcement Ferrexpo share price declined by 8%, but quick recovery followed, so that share price of the company exceeded GBP 140 on Friday.
We note that in October after it was announced that Wigmore sold part of its stake share price of Ferrexpo fell by about 20% with recovery thereafter. So current week dynamics and market reaction to the news was much more smooth.
In general share price of the company is supported by good iron ore price dynamics during last period of time, which leads to good operating and financials performance. We estimate that in Y2016 revenues of Ferrexpo are to make about USD 1bln, EBITDA – close to USD 365M.