New Hope has signed a binding agreement to buy the Malabar shares it does not already own. Other Malabar shareholders would receive half a New Hope share for each holding, leaving them with about a fifth of the combined group. The transaction brings the Maxwell underground coal mine into the enlarged company, subject to shareholder, court and regulatory approvals. Implementation is expected by March 2027.
New Hope Corporation, an Australian coal producer, has signed a binding agreement to acquire the Malabar Resources shares it does not already own. Its existing stake is approximately 26 per cent. Other Malabar holders would receive 0.5 New Hope shares per share through a court-approved scheme. The companies expect implementation by March 2027, subject to approvals and other conditions.[1], [2]
Approximately 227.8 million new New Hope shares would be issued. At its 16 October closing price of 5.84 Australian dollars, the exchange implies 2.92 Australian dollars per Malabar share and an approximately 1.8 billion Australian dollar diluted equity value. That implied consideration moves with New Hope’s share price. Existing New Hope shareholders would hold about 79 per cent of the combined company, and other Malabar holders about 21 per cent.[1]
Malabar operates the Maxwell underground coal mine in the Upper Hunter region of New South Wales, Australia. Longwall production began in April. Expansion carries a target of up to 5.5 million tonnes of annual saleable production. Malabar’s board, excluding New Hope nominee Rob Bishop, recommends the transaction subject to no superior proposal and a favourable independent expert opinion. Shareholder, court and regulatory approvals, including Japan Fair Trade Commission approval, remain required.[1]
