Czech group takes majority stake in Coronado

The news: Czech-based investment group Sev.en Global Investments has agreed to buy a controlling stake in ASX-listed metallurgical coal miner Coronado Global Resources.

The numbers: Sev.en signed a binding agreement to acquire 51% stake in Coronado from private equity firm Energy & Minerals Group, for an undisclosed price. Coronado shares closed at $1.84 each on Monday, giving the company a market value of $3.1 billion.

The context: Coronado produced more than 16 million tonnes of met coal in 2022 from its mines in Queensland’s Bowen Basin and the Central Appalachian region of the United States. The company was founded in 2011 by EMG along with Garold Spindler and James Campbell. The purchase is subject to regulatory approvals in the US and Australia. Se.ven, whose investments in Australia include the Vales Point coal-fired power station in NSW and Western Australia’s Lake Way potash project, said the acquisition would help satisfy the growing demand for steel globally.