RPG (an international industrial investment group that focuses on the energy, mi ...

RPG (an international industrial investment group that focuses on the energy, mining and commodity sectors in Central and Eastern Europe) has formed a strategic partnership with First Reserve Corporation (the largest and oldest private equity firm specialising in the energy sector worldwide) and American Metals and Coal International (a mining, trading and marketing company with interests in the US, Australia, South Africa, Venezuela, and China). Under the partnership, affiliates of First Reserve and AMCI have acquired a 19% shareholding in OKD, the Czech Republic’s leading black coal mining company, from RPG. OKD produces more than 12mn t/y of high Btu, low sulphur coal, which is used both for power generation and as a raw material for steel production. In addition to black coal mining, OKD produces approximately 2mn t/y of coke used for steel production, operates regional transportation and logistics assets and, through Metalimex, trades commodities and metals. RPG is currently seeking to participate in the privatisation of the Polish coking coal mining industry. RPG has further strengthened its portfolio with the integration of Pannonpower Holding, a 190-MW biomass- and gas-fired power plant based in the southern Hungarian town of Pecs. Prior to its integration into RPG, Pannonpower was held by Crossroads Capital, the London-based private equity house and an investor in RPG. RPG’s shareholding in Pannonpower is 85%. The power plant’s management holds the remaining 15% shareholding.