Nathan Tinkler is back in the mining game after news broke this morning that he has purchased the Willkie Creek coal mine from Peabody Energy for $150 million.
But for a bloke that just a few weeks ago seemed so broke he was about to lose his grip on the Newcastle Knights rugby league team this is a remarkable turnaround.
As with other deals however, Tinkler is backed by the little known, at least in Australia, US investment bank Jeffries and Co.
Jeffries and Tinkler have a long standing, if not sometimes strained, relationship with the firm backing Tinkler and his companies into a number of deals over the past few years.
But after Jeffries ended up taking Tinkler’s stakes in both Whitehaven Coal and his royalty stream from the Middlemount coal mine in Queensland many thought the relationship might have soured.
This deal suggests otherwise so Business Insider decided to find out a little more about Jeffries.
Here’s what we learnt.
S&P McGraw Hill Corporate Info says that Jefferies Group LLC, founded in 1962 and based in New York, is focussed on “institutional investors, corporations, and government entities”. It is also a subsidiary of Leucadia National Corporation.
Jefferies Group LLC is a full service investment bank operating investment banking, equities, fixed income, wealth management and commodities businesses.
According to its website Jeffries has:
- 3,800 employees;
- $43 billion in assets; and
- Over $11 billion in long-term capital
- Offices in 30+ cities worldwide
- Global headquarters in New York; regional headquarters in London and Hong Kong
- 250 research professionals covering over 2,400 companies in the Americas, EMEA and Asia
While it doesn’t have an office in Australia it has one in Singapore where Tinkler is now based.
Tinkler told The Australian this morning that: “We have a strong record in the coal industry for identifying value and I think we’ve done it again here”.
Tinkler is coming back and Jeffries is with him.
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