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Czech group acquires majority stake in Coronado Global Resource

Australian-US coking coal miner and exporter, Coronado Global Resources (ASX:CRN), welcomes a new major shareholder as America’s Energy and Minerals Group (EMG) sells its 51% stake to a Czech private equity group.

The US group and the new shareholder disclosed the deal in a statement to the ASX on Tuesday morning, with no mention of the price.

Seven Global Investments, the buyer, marks the Czech group’s third significant acquisition in Australia’s resources sector in the past year. This includes the purchase of the Vales Point power station and nearby Chain Valley coal mine, located south of Newcastle on the NSW Central Coast.

Coronado Global Resources operates three mining operations in Australia and the central Appalachian coal region on the US east coast, with an annual coal production of 16 million tonnes, primarily coking coal for the steel industry.

“We believe that Coronado has established a successful business strategy, and we will support the company in the continuation of its business strategy to grow and strengthen its position both in the U.S. and Australia,” said Seven Global Investments Chief Executive Alan Svoboda in a statement.

Czech billionaire Pavel Tykac, owner of Seven Global Investments, has expressed interest in coal assets in both Australia and the US.

Notably, the price of the 51% stake was not disclosed, raising potential concerns with Australian regulators, as there is no update for Coronado’s Australian shareholders regarding the price. The deal requires approvals in the US and Australia, and the Foreign Investment Review Board (FIRB) may play a role in eliciting more details from the Czech buyer.

Coronado shares closed at $1.84 on Monday, valuing the company at $A3.08 billion. Presumably, the purchase price for the 51% stake exceeds half of this market value and is higher than $1.84 per share.

In late 2022, Coronado and the US coal group Peabody pursued a $9 billion merger that ultimately fell through due to disagreements between EMG and Peabody over terms. EMG had reportedly been eager to sell its stake in Coronado.

Coronado had previously considered acquiring BHP’s two Queensland coal mines, Daunia and Blackwater, which are expected to sell for over $A4.6 billion but withdrew from the contest. Whitehaven Coal has expressed a high level of interest in these mines.

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