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2012.04.30 | Russian court to hear minority holder suit vs MMK on May 24

A Russian regional arbitration court, which prohibited the acquisition of Australia’s Flinders Mines Ltd by Magnitogorsk Iron and Steel Works (MMK), plans to hear the lawsuit of MMK’s minority shareholder against the deal on May 24.

The shareholder argued that the deal discriminates against their interests as a shareholder as it would allegedly lead to financial and operational risks for MMK, and thus affect the plaintiff’s investments in MMK shares.

The company also said that it had acted in accordance with the law over the course of the implementation of the Flinders Mines’ acquisition, adding that the plaintiff’s actions were unjustified.

In November 2011, MMK offered Flinders Mines’ shareholders to sell 100% of the company at 0.30 Australian dollars per share. Shareholders of Flinders Mines approved the acquisition on March 30.

Flinders Mines focuses on iron ore mining, with the company’s flagship asset being the Pilbara iron ore project in Western Australia.