The investment fund Bonum Capital has acquired a 16 percent stake in the metallurgy company Koks, the largest Russian manufacturer of commercial coke and one of the cleanest coking coal power plants in the world.
The shares were acquired by a minority shareholder, which, according to Kommersant, represents the settlement of an ongoing dispute between the shareholder and the fund. Bonum Capital has not disclosed the amount it paid for the shares.
Coking coal is used in industry as a raw material for making pig iron. Metallurgical giants in Russia are currently looking for ways to make their operations greener, with the steel industry currently responsible for 7 to 9% of global CO2 emissions, according to the World Steel Association.
“We believe PJSC Coke is a leader[er] and one of the most promising players in the metal industry in Russia and we see great prospects for effective growth that will take the company to a whole new level, ”said Murat Aliev, founder and owner of Bonum Capital. “In the medium term, we see the company’s potential to expand into the international capital markets,” he added.
Green technologies are used around the world to clean up this polluting industry. For example, the Swedish steel manufacturer SSAB made history this year with the first pilot delivery of carbon-free steel. It was made using renewable energy and hydrogen in an electric arc furnace (EAF). Russian businessman Alisher Usmanov announced this week that green technologies will transform European metallurgy, one of the reasons for his own investment in hot briquette iron, a steel-making raw material that can produce up to 35% less CO2 than traditional manufacturing methods.
The transaction continues a series of investments by Bonum in promising sectors of the Russian economy. Earlier this year, after participating in the company’s IPO, the fund invested $ 150 million in the Russian forest company Segezha Group. The move was a vote of confidence in the Russian forest products sector as Segezha will become the country’s largest forest owner even after an anticipated M&A with another industry player.
Bonum Capital is an international investment firm that invests in a range of assets, from venture capital and private equity to Russian real estate. According to its website, the company specializes in investing in public markets. The company also has experience acquiring, cleaning up, and packaging distressed assets along with the assets of other industry players to add value.
This article first appeared in the New Economy Observer (NEO), a digital publication that deals with the interface between finance and social responsibility with a special focus on emerging markets. It provides news and analysis on key topics shaping the new world economy, including climate change and renewable energy, sustainable development, e-commerce and technical innovation, and the future of work.
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