Sev.en Global Investments rides on expansion wave - entering Asia via a power plant acquisition in Vietnam
Press Release (Prague, Czech Republic, November 30, 2023)
Sev.en Global Investments makes another strategic move. The Group announced its entry into Asia via the acquisition of the Mong Duong 2 coal-fired power plant in Vietnam. Sev.en GI has signed an agreement to acquire a majority stake (51%) from the US company The AES Corporation. The transaction remains subject to approval by the Vietnamese authorities. With this transaction, which closely follows the acquisition of a majority stake in metallurgical coal producer Coronado Global Resources, the Group is further strengthening its global presence in power generation and mining sectors.
Mong Duong 2 is a 1.2 GW coal-fired power plant in northern Vietnam that was commissioned in 2015. It is a strategic supplier of electricity to Hanoi and the northern part of the country. Sev.en Global Investments is committed to operating the plant in accordance with the existing BOT (Build, Operate, Transfer) contract with the highest environmental and safety standards.
Alan Svoboda, CEO of Sev.en Global Investments, said of the transaction: "We are very pleased to announce this acquisition. After establishing our presence in Europe, North America, and Australia, we are now entering the 4th continent - Asia. As an experienced owner and operator of similar power plants we are proud to take over the operator role from AES. We appreciate the strong diplomatic and business ties between Vietnam and the Czech Republic and look forward to a cooperation including working together on satisfying all regulatory requirements. We also aspire to engage in more public-private deals like this one.”
Sev.en GI's primary goal is to ensure energy security while also foster the economic, safe, and reliable operation of the power plant and supporting the employees and local communities.
Alan Svoboda, CEO of Sev.en Global Investments added: “We are a strategic long-term investor with a wealth of expertise in the management of power generation and mining assets. We own and operate our assets with experienced local managers supported by our central team of technical and commodity experts. We always strive to share the knowledge across our whole portfolio. We were impressed by the local Mong Duong 2 management team as well as the excellent status of the plant. We will continue to maintain these high standards. “
The acquisition is a significant milestone as it would be the largest Czech investment in Vietnam. This transaction further deepens the already close bilateral trade relations between the two countries. Hynek Kmoníček, Czech Ambassador to Vietnam, said of the transaction: "We welcome this by far the largest Czech strategic investment. It moves our country into the first league of foreign investors in Vietnam and broader Southeast Asia. I congratulate Sev.en and hope that successful closing of this transaction will attract further Czech investments into Vietnam."
Following the September signature of a binding agreement for the acquisition of 51% of Coronado Global Resources, this is a second major transaction for Sev.en GI within just few months. It clearly documents the Group's strength and capacity to acquire major power generation and mining assets on a global scale.
The transaction will close following approval by the Vietnamese authorities.
About Sev.en Global Investments
Sev.en Global Investments is a Czech based investment group investing across a range of sectors, particularly into power generation and mining of various natural resources. Sev.en GI operates on three continents – Europe, Australia, and North America, soon to be present also in Asia.
In Australia, the investment portfolio includes 1) Delta Electricity with the Vales Point Power Station and Chain Valley Colliery coal mine; 2) SO4 company - premium potash fertilizer producer and 3) Sev.en Royalties with mining rights in two regions.
In the United States, it is the owner of a 1) met-coal mining company Blackhawk Mining with annual coal production of around 9 million tonnes and 2) Golden Eagle Land Company holding mining rights to more than 2 billion tonnes of coal reserves.
Sev.en Global Investments is part of the Sev.en Group whose beneficiary is Mr. Pavel Tykač, a prominent Czech entrepreneur and investor, ranking among the top 300 World´s wealthiest people by the Forbes Real Time Billionaires.
For further information, please visit www.7gi.com.
+420 775 299 337