By Digifin Pty Ltd · About this coverage
Key Points
- 0.500 New Hope shares for each Malabar share, implying $2.92 per Malabar share
- Implied equity value about $1.8 billion for 100% of Malabar; enterprise value about $2.4 billion
- Existing New Hope shareholders to own about 79% of the combined group
- Maxwell Mine targeting up to 5.5Mtpa saleable production once the longwall is expanded
- Implementation expected by March 2027, subject to approvals
About New Hope (ASX:NHC)
New Hope Corporation Limited is an ASX-listed coal producer based in Queensland. It operates the Bengalla Mine in New South Wales and the New Acland Mine in Queensland, and holds an equity interest in Malabar Resources Limited. The group sells thermal and related coal products into domestic and export markets.
New Hope (ASX:NHC) has signed a binding agreement to acquire the Malabar Resources shares it does not already own, which would give it full ownership of the Maxwell Mine near its Bengalla Mine in the Upper Hunter.
Under the scheme of arrangement, Malabar shareholders other than New Hope will receive 0.500 New Hope shares for each Malabar share, equivalent to approximately 227.8 million New Hope shares. Based on New Hope's closing price of $5.84 on 16 October 2026, that implies $2.92 per Malabar share, an equity value for 100% of Malabar of approximately $1.8 billion on a fully diluted basis and an implied enterprise value of approximately $2.4 billion. New Hope holds a relevant interest of approximately 26% in Malabar, an unlisted public company. Existing New Hope shareholders would own approximately 79% of the combined group. The Maxwell Mine commenced longwall production in April 2026 and is targeting up to 5.5Mtpa of saleable production once the longwall is expanded. The Malabar Board, other than New Hope nominee Rob Bishop, unanimously recommends the scheme, subject to customary qualifications, and a break fee or reverse break fee of approximately $17 million may apply.
The scheme requires Malabar shareholder and Court approval, customary regulatory approvals including from the Japan Fair Trade Commission, and an Independent Expert finding it in Malabar shareholders' best interests. Implementation is expected by March 2027. The implied value will vary with New Hope's share price, and the release does not quantify synergies.
Source: New Hope Corporation Limited (ASX:NHC), 19 October 2026. Summary content supplied by Digifin Pty Ltd.
News summary only, not financial advice. It does not consider your objectives, financial situation or needs.