Sev.en Global Investments (GI) has made another strategic move, announcing 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 AES Corp. The transaction remains subject to approval by the Vietnamese authorities. This follows on the heels of the acquisition of a majority stake in metallurgical coal producer Coronado Global Resources.
Mong Duong 2 is a 1.2-gigaWatt 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 GI said it is committed to operating the plant in accordance with the existing BOT (build, operate, transfer) contract with the highest environmental and safety standards.
After establishing our presence in Europe, North America, and Australia, we are now entering a fourth continent, Asia,” said Alan Svoboda, CEO of Sev.en GI. “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.
“We are a strategic long-term investor with a wealth of expertise in the management of power generation and mining assets,” Svoboda said. “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 also a significant milestone as it would be the largest Czech investment in Vietnam. The transaction will close following approval by the Vietnamese authorities.
