The deal room feels like it's beginning to heat back up, and the mining sector seems to be at the centre of its reignition. This morning, yet another mining stock included in the ASX 200 benchmark is the subject of a transaction.
Shares in Coronado Global Resources Inc (ASX: CRN) surged an impressive 16.5% over the 19 days prior to today's session. However, today, the major news relates to the metallurgical coal producer being the target of a majority acquisition.
The Coronado share price is 2.72% higher today, hitting $1.89 as we approach the final bell.
Who's buying a huge chunk of this coal miner?
Coronado Global investors had some news to chew on before the Aussie share market opened today. In a release, the Australian-based coal company informed shareholders that a binding agreement had been entered between The Energy & Minerals Group (EMG) and Sev.en Global Investments.
Back in 2011, Coronado was founded by three parties: EMG, Gerry Spindler, and James Campbell. The first is a private investment firm with around $14 billion in assets under management, focussing on, you guessed it… the energy and minerals sectors.
Sev.en Global Investments is the acquirer of what will be a 51% stake from long-time shareholder EMG. Based out of Czechia, the investment group is owned by billionaire energy entrepreneur and investor Pavel Tykač.
For approximately $1.6 billion, Sev.en will gain a majority stake in one of the top five producers of metallurgical coal in Australia and the United States. The acquirer highlighted the strategic role the ASX 200 mining stock can play in a world underpinned by growing demand for steel.
Commenting on this, Sev.en Global Investments CEO Alan Svoboda stated:
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. We believe that Coronado has established a successful business strategy and will support the company in continuation of its business strategy to grow and strengthen its position both in the US and Australia.
Marred by the public's perception, this ASX 200 mining stock — much like other coal miners — trades on a price-to-earnings (P/E) ratio of barely five times earnings.
ASX 200 mining stocks in the sights of buyers
Joining Coronado Global today as hot property among investors is fellow ASX 200 mining stock Liontown Resources Ltd (ASX: LTR).
As covered by James Mickleboro earlier today, Gina Rinehart — one of Australia's prominent billionaire mining tycoons — was revealed to have upped her stake in Liontown Resources to 10.7%. However, it continues to be considered a strategic stake.
Rinehart's increasing holding has landed as a pending takeover of Liontown by Albemarle Corporation (NYSE: ALB) awaits due diligence.
