22 Feb 2024 18:45

Major shareholder in iron ore miner IRC sold stake in offer, this now closed

MOSCOW. Feb 22 (Interfax) - MIK Invest, controlled by Marina Kolesnikova and previously the second biggest shareholder in iron ore miner IRC Limited with 16.67%, sold its stake in an offer to firms controlled by Nikolai Levitsky, the founder of Geotech.

IRC said Levitsky's firms amassed 26.15% of the company's shares during the offer and closed it. As a result of the offer, Levitsky increased his stake from 30.61% to 56.76%, in other words they gained control of IRC. MIK Invest divested its entire stake.

Levitsky's stake in IRC rose above the 30% threshold in November and a firm controlled by him offered to buy other shareholders out for HK$0.118 per share. IRC's shares closed at HK$0.089 just before the offer but have climbed towards the offer price since then. The offer price values the whole of IRC at HK$1 billion or US$129 million at the current rate. Kolesnikova's stake was worth HK$168 million or more than US$21 million, while Levitsky's firms will spend HK$263 million or just under US$34 million in total on shares tendered in the offer.

IRC is the largest iron ore producer in the Russian Far East. Its principle asset, the Kimkano-Sutara or K&S mine in the Jewish Autonomous Region, produces concentrate with an iron content of 65%.