Coronado’s Czech suitor studying more steel, power acquisitions

afr.com:

Sev.en Global Investments’ raid on a majority shareholding in coal miner Coronado Global Resources could soon be followed by the acquisition of more Australian power generation and steelmaking assets.

Speaking after striking a deal to buy 51 per cent of Coronado on Tuesday, Sev.en chief executive Alan Svoboda said the Czech group, which is majority owned by billionaire Pavel Tykac, wanted to continue buying unloved assets in stable jurisdictions like Australia.

Sev.en’s Alan Svoboda said the Czech group wanted to expand its investments in countries like Australia. 

The price agreed for the 51 per cent stake in Coronado was not disclosed by Sev.en nor the seller, private equity firm Energy and Minerals Group.

Based on Coronado’s $3.1 billion market capitalisation, the stake would be worth close to $1.5 billion and comes after Sev.en’s acquisition of the Vales Point coal-fired station in NSW, the Lake Way potash project in Western Australia, and minority stakes in Queensland’s Callide and Milmerran power stations.

Mr Svoboda said the Coronado acquisition – which requires regulatory approval in Australia and the United States – was driven by the belief that steelmakers would drive strong demand for coking coal for a long time to come. While the Coronado swoop was not driven by a desire for vertical integration in the steel industry, Mr Svoboda said Sev.en was studying opportunities to acquire steelmaking assets in stable jurisdictions.

“We are looking also into the steel industry to see where we could invest in that space as well, primarily because we also see that some of the steel mills lack capital for sustainable growth,” he told The Australian Financial Review.

“Some steel companies don’t have that kind of strategic