Pavla Tykač’s Sev.en Global Investments signed a binding agreement to take over a majority stake in Coronado Global Resources. The seller is the investment group Energy & Minerals Group, which founded the company 12 years ago, Tykač’s group said. According to its website, Coronado Global Resources is one of the world’s largest producers of metallurgical coal, its shares are traded on the Australian ASX stock exchange.
The transaction requires the approval of the authorities from both of these countries. This was announced to ČTK today by Sev.en Global Investments head of communications Veronika Diamantová. She did not disclose the price of the transaction.
“We believe in the set business strategy and are ready to invest in its development in order not only to strengthen the already owned mines in Australia and the United States, but also to support other acquisitions,” said CEO of Sev.en Global Investments Alan Svoboda regarding the transaction. Coronado extracts up to 16 million tons of raw material annually in Queensland, Australia and in the US states of Pennsylvania, Virginia and West Virginia. According to Sev.en Global Investments, the coal reserves there guarantee long-term mining.
Sev.en Global Investments
- It belongs to Tykač’s Sev.en group
- The group operates on three continents – Europe, Australia and North America.
- In Australia, its investment portfolio includes Delta Electricity’s Vales Point Power Station and Delta Coal’s Chain Valley Colliery. Furthermore, the producer of potash SO4 fertilizer and also Sev.en Royalties, which owns mining rights to coal reserves.
- In the United States, the group owns metallurgical coal mining company Blackhawk Mining and Golden Eagle Land Company, which has mining rights to more than two billion tons of coal reserves.
- Tykač is the fourth richest Czech with a fortune of eight billion dollars (roughly CZK 184 billion) according to the April ranking of Forbes magazine.
In an interview with Reuters this May, Tykač said that he was looking at other acquisitions in the United States and Australia. He wanted to focus on power generation, coal mining and mining rights, which have high returns and are sectors that others shun, he said. According to Tykač, investments in coal and fossil fuels are difficult to finance, which makes them cheaper, as they must be financed with own capital.