New Hope Shares Hit Near One-Month High as It Agrees to Malabar Resources Deal

3-line summary

• Australia's New Hope Corp agreed Monday to a binding deal to acquire the remaining stake in Malabar Resources it does not already own (it holds about 26%), valuing Malabar's equity at about A$1.8 billion and enterprise value at about A$2.4 billion; non-New Hope Malabar shareholders will receive 0.5 New Hope shares per Malabar share held, equivalent to about A$2.92 per share based on New Hope's October 16 close of A$5.84, with New Hope issuing roughly 227.8 million new shares.
• Existing New Hope shareholders will hold about 79% of the combined company and Malabar shareholders about 21%, with pro forma market capitalization of roughly A$6.3 billion; the deal is subject to Malabar shareholder and court approval, regulatory clearances including Japan's competition authority, and an independent expert concluding it is in shareholders' favor, with both boards backing it and Malabar's board recommending it unanimously. Completion is targeted by March 2027.
• The acquisition gives New Hope full control of the Maxwell underground coal mine near Muswellbrook in New South Wales' Upper Hunter region, adjacent to its existing Bengalla operation; Maxwell began longwall production in April and is targeting annual saleable coal output of up to 5.5 million tonnes. New Hope shares rose 4.6% to A$6.11 Monday, their highest level since September 21, while the S&P/ASX 200 was up about 0.2%.

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