Sev.en Energy enters the metallurgical coal mining industry
Toronto, Prague May 13, 2020 – Sev.en Energy AG announced today that it has acquired 17,1% shares in US metallurgical coal producer Corsa Coal Corp., marking the entry of the Group into the metallurgical coal mining industry.
All of the purchased shares were acquired pursuant to a private transaction for CAD $0.22 per share in cash, for an aggregate amount of CAD $3,6 million.
“We see long-term potential in the metallurgical coal mining industry. It is suffering now during the global industrial downturn triggered by the Covid-19 pandemic. However, in the long-term we expect strong demand from steel making industry driven by urbanization in emerging markets. This, combined with insufficient investments into developing new mines creates, a supportive environment for metallurgical coal prices in the upcoming years,” said the executive director of Sev.en Energy – Alan Svoboda, who is leading the international expansion of the Group.
Sev.en Energy currently owns coal mining and power generation assets in the Czech Republic, in the United Kingdom and in Australia.
In the Czech Republic it is the largest privately-held operator of coal mines and conventional power plants with more than 3,500 employees.
Sev.en Energy acquired in 2019 additional power generation assets from Swiss energy group Alpiq AG. It included two Czech coal-fired power plants in Kladno and Zlín with installed capacity of 588 MWe and 1,342 MWth.
Further to its current portfolio, Sev.en Energy also agreed to take over the largest coal plant in the Czech Republic with installed capacity 1000 MW from the Czech incumbent electricity producer and distributor – CEZ a.s.
Last year Sev.en Energy acquired also 50% stake in the multinational energy company – InterGen N.V. InterGen is one of the leading independent power generators with gas-fired power plants in the United Kingdom and and coal-fired power plant and coal mines in Australia, with total installed capacity of around 3,300 MW and 270 employees.
When pro-forma aggregated with the financial results of InterGen and Alpiq CZ (recently renamed to Teplárna Kladno), Sev.en Energy group combined revenues in 2019 were EUR 1,377 million and EBITDA of EUR 319 million.
Gabriela Sáričková Benešová
Spokesperson for the Sev.en Energy group
Tel: +420 476 203 141
GSM: +420 725 327 758