Tigers Realm Coal suspends privatisation plans citing regulatory concerns and a sanctions lawsuit

Directors of Tigers Realm Coal, which has mines in Russia, have put their plans to take the company private on hold.

Tigers Realm Coal wants to keep operating its Russian coal miners despite Australian sanctions targeting the Kremlin’s war in Ukraine. Picture: AFP

Tigers Realm Coal directors have put plans to take the company private on hold amid a legal challenge to Australia’s sanctions over the company’s Russian coal operations.

Tigers Realm had been working on plans to sell or redomicile its businesses, and take the company off the Australian Stock Exchange, after being advised by the Department of Foreign Affairs and trade that continuing to operate its Russian coal mines could put the company in breach of anti-Russia sanctions.

The company launched legal action in the federal court challenging those sanctions in late June, in a move legal experts say could punch a hole in Australia’s moves to pressure Vladimir Putin into abandoning his war in Ukraine.

Tigers Realm told the market on Tuesday it was not pushing forward with its privatisation plans as it fought the federal government in court, however.

“The independent board committee established to consider and prepare for the potential

privatisation has resolved to suspend further activities regarding the potential privatisation at this time due to concerns regarding the ability to procure the necessary regulatory relief on a timely basis under Australian and Russian law,” the company said.

The company did not give further details of its concerns.

It has previously said the privatisation could include a selective capital reduction “to allow certain shareholders to realise immediate value for their shares in the company”.

Tigers Realm’s controlling shareholder is Sirtex Medical founder Bruce Gray, who holds almost 60 per cent. Guernsey-registered Baring Vostok Mining Holdings holds 18.2 per cent.

Its third-biggest holder is RDIF Investment Management LLC – which a 2016 Tigers Realm disclosure says is a subsidiary of the Russian Direct Investment Fund, a body established by Mr Putin (at the time the Russian prime minister) and then president Dmitry Medvedev to encourage international investment in Russia.

RDIF was added to the Australian and US sanctions list in early 2022, with a statement from the US treasury department saying it was “widely considered a slush fund for President Vladimir Putin and is emblematic of Russia’s broader kleptocracy”.