The New Hope Corporation Ltd (ASX: NHC) share price is in focus today after announcing plans to acquire all outstanding shares of Malabar Resources Limited via a recommended scheme of arrangement. This merger will create a combined group with a pro forma market capitalisation of around $6.3 billion and is expected to deliver up to 19 million tonnes of saleable coal production per year.
What did New Hope report?
- New Hope will acquire all Malabar shares it doesn’t already own, via a scheme of arrangement.
- Malabar shareholders to receive 0.500 New Hope shares for each Malabar share, valued at $2.92 per Malabar share (based on New Hope’s 16 October 2026 closing price).
- Implied equity value of $1.8 billion for Malabar and a combined group market cap of about $6.3 billion.
- Malabar shareholders will hold approximately 21% and New Hope shareholders about 79% of the combined group.
- The deal is unanimously supported by both boards, subject to standard approvals.
- Scheme implementation is targeted by March 2027, pending necessary approvals.
What else do investors need to know?
The merger brings together three high-quality coal operations, consolidating Malabar’s Maxwell Mine with New Hope’s portfolio. The transaction allows Malabar shareholders to swap their unlisted shares for liquid ASX-listed New Hope shares, providing them with greater flexibility and ongoing exposure to the growing Maxwell Mine.
On completion, Malabar’s nominees Wayne Seabrook and Tony Haggarty will join the New Hope Board. This will ensure the group retains strong underground mining know-how and helps facilitate a smoother integration. The combined entity also plans to refinance Malabar’s debt, aiming to unlock further value through enhanced scale and improved capital access.
What did New Hope management say?
New Hope CEO Rob Bishop commented:
This transaction provides a clear pathway to unlock the full value of the Maxwell Mine for both shareholder groups. For New Hope shareholders, this on-strategy transaction brings 100% of the Maxwell Mine into the New Hope portfolio, at compelling and accretive terms.
What’s next for New Hope?
The scheme now needs approval from Malabar shareholders, the court, regulators, and Japan’s Fair Trade Commission. If these are granted, implementation is expected by March 2027. Both companies will focus on blending their strengths—New Hope’s operating and financial capability with Malabar’s project and underground mining experience—to ramp up production at Maxwell and explore further regional opportunities.
For Malabar shareholders, the move provides liquidity, exposure to a broader coal asset base, and the possibility of continued dividends, while New Hope shareholders gain 100% control of a large-scale, long-life underground mine.
New Hope share price snapshot
Over the past 12 months, New Hope shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.
The post New Hope to create $6.3bn coal group with Malabar merger appeared first on The Motley Fool Australia.
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