Svoboda joined Sev.en in 2018 to take care of its overseas expansion. The 52-year-old former executive at Czech utility CEZ AS says the EU effort to phase out coal is posing “elevated regulatory risk” to companies such as Sev.en.
“We are largely losing interest in Europe, except for the UK,” Svoboda said. “We are drawn to America and Australia.”
While the focus remains on developed nations with stable political systems, Tykac’s empire is also expanding into communist-ruled Vietnam, where it has agreed to buy 70% of a coal plant from American and Chinese investors. The 1.2 gigawatt facility outside Hanoi comes with a supply contract that hedges the owner against swings in exchange rates and coal prices until 2055.
Sev.en is hoping that the investment could be followed by expansion into places like India, Indonesia and Malaysia, according to Svoboda. Many countries in the region aren’t planning to ditch coal anytime soon, and their governments are often willing to compensate foreign owners with long-term guarantees.
“We thought it was time to try something new,” said Svoboda. “We would like to replicate our investment in Vietnam in other places across South-East Asia.”
It does remain easier to secure funding for green projects, which is one reason why the group is also seeking to diversify into industries such as electricity storage and mining minerals, including those used in batteries. In Australia, it is about to start producing potassium-sulfate fertilizer made via an environmentally friendly process.
Over the past 18 months, Sev.en has opened offices in New York, London and Sydney in an effort to expand its global footprint. “We’ve been looking at bigger and bigger transactions,” said Svoboda, adding that the “sweet spot” for acquisitions is currently between €500 million and €1 billion.
Despite the rising appetite, Sev.en remains selective, according to Svoboda.
“Rather than having a broad portfolio of many smaller items,” he said, “our goal is to own a limited number of crown jewels that we go all-in on.”
(By Krystof Chamonikolas)
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Publish date : 2024-10-25 09:20:00
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