Czech Republic-based Sev.en Global Investments has struck a deal to acquire a 51% interest in ASX-listed coal miner Coronado Global Resources from founding company The Energy & Minerals Group (EMG).
No details of the transaction were released, but Coronado told shareholders this week that the acquisition was subject to customary closing conditions, including regulatory approvals in the US and Australia.
Coronado currently has yearly production of 16-million tonnes of metallurgical coal from its operations in Queensland’s Bowen basin and the Central Appalachian region of the US. The company is ranked as one of the top five producers of metallurgical coal in Australia and the US, and has a reserve of 550-million tonnes.
We are excited to become the majority shareholder of Coronado. The company is a global leader in metallurgical coal mining, with world-class performance across its mines,” said Sev.en Global Investment CEO Alan Svoboda.
“We believe that Coronado has established a successful business strategy and we will support the company in continuation of its business strategy to grow and strengthen its position both in the US and Australia. This deal is a testament to our ability to grow rapidly and successfully and aligns with our long-term strategy for international growth in these two jurisdictions.”
EMG founder and executive chairperson John Raymond said that the transaction with Sev.en accomplished the company’s short-term objectives and contemporaneously leaves Coronado well positioned for continued long-term success.
“When we formed Coronado 12 years ago, we did so with the objective of becoming one of the industry’s leading metallurgical coal businesses with a large-scale resource base, strong balance sheet and a best-in-class management team with whom we have created considerable value. With these constructs in place as we transition the business to Sev.en, the Coronado platform remains well positioned for the future given Sev.en’s deep understanding of metallurgical coal fundamentals complemented by their strong balance sheet and stated objective to continue to support and grow the business.”