Tiger’s Realm sells Russian assets to mining tycoon

Tiger’s Realm has sold its Russian coal assets to a local tycoon after being caught on the wrong side of federal government sanctions.

Tiger’s Realm has sold its entire Russian coal business.

Tiger’s Realm has sold its Russian coal operations to local tycoon Mark Buzuk after the federal government’s sanctions against the country effectively made its business unviable.

The company told the ASX on Monday it had agreed to sell its Amaam North project and the Beringovsky Coal Terminal to Mr Buzuk’s company APM-Invest for $US49m, subject to shareholder and government approvals.

The company was caught up in the federal government’s sanctions against Russia as a result of its war against Ukraine, which designated coal as an “import sanctioned good”, prohibiting Australian companies from dealing in them.

The sanctions, announced in 2022, declared it was “prohibited to import, purchase or transport any of the following goods (including coal) if they were exported from, or originated in, Russia”.

Tiger’s Realm sought a declaration from the federal court that moving coal within Russia and loading it on to ships for export did not constitute “transport” within the meaning of the regulations, however that application was dismissed on April 9.

The company’s shares were placed in a trading halt the following day and the company announced on Monday it was selling its Russian operations, which are its only operating assets.

“As a consequence of the considerable and ever-increasing challenges faced by Tiger’s Realm as outlined in numerous ASX releases as well as the CEO’s presentation to the annual general meeting in August, 2023, the board of directors ... decided that the divestiture of Tigers Realm’s coking coal projects is in the best interest of shareholders and represents the most effective way to unlock the inherent value in the coking coal projects for the shareholders,” the company said in a statement to the ASX.

“The board went through a detailed strategic review and a careful process of identifying a purchaser.”

The company told the ASX it plans to use the money raised in the sale to return capital to its shareholders.

Mr Buzuk is a Russian businessman who has held positions including as former head of Russian investment firm Renova which was active in Africa and who appears to be a former business partner of Russian billionaire oligarch Viktor Vekselberg.

Tiger’s Realm made a net profit of $46.1m in the 2023 calendar year, down 13 per cent, on revenue of $140.1m, down 25 per cent.

The company had no long term debt at the end of the year and net assets of $175.7m.

Tiger’s Realm will soon hold a meeting of shareholders to vote on the proposal.

Tigers Realm shares were reinstated to trade on Monday morning however no trades had been executed as at noon.

The company was removed from the All Ordinaries index on March 1.

The Australian has contacted the company for comment.

Originally published as Tiger’s Realm sells Russian assets to mining tycoon