New Hope to acquire Malabar in $1.8 billion deal
- New Hope Corporation has agreed to acquire all remaining shares in Malabar Resources through a binding scheme implementation deed.
- The transaction values 100% of Malabar at approximately $1.8 billion on an equity value basis.
- The deal combines operations to form an ASX-listed coal producer targeting roughly 19 million tonnes of annual saleable production.
New Hope Corporation (ASX:NHC) has agreed to acquire all remaining shares in Malabar Resources in a transaction that values Malabar at approximately $1.8 billion.
The transaction combines two key Australian energy assets, creating a combined entity with a pro forma market capitalisation of approximately $6.3 billion.
New Hope CEO Rob Bishop said, “For New Hope shareholders, this on-strategy transaction brings 100% of the Maxwell Mine into the New Hope portfolio, at compelling and accretive terms.”
Malabar nominees Wayne Seabrook and Tony Haggarty will join the board of the combined business upon implementation of the scheme.
Under the terms of the agreement, Malabar shareholders will receive 0.500 New Hope ordinary shares for each Malabar share held.
The combined group aims to establish a clear pathway towards 19 million tonnes per annum of saleable coal production.
Following the announcement, the New Hope Corporation share price was up at $6.17.
The transaction gives New Hope full ownership of the Maxwell Mine, which commenced longwall production in April.
Existing New Hope shareholders will own approximately 79% of the combined group, while Malabar shareholders will hold the remaining 21%
