Australia's New Hope to fold Malabar Resources into $4.39bn coal group in all-scrip deal
Australian coal miner New Hope said on Monday it would acquire unlisted peer Malabar Resources in a deal valued at about A$2.4-billion ($1.67-billion), giving it full ownership of the Maxwell coal mine in New South Wales.
Under the scheme of arrangement, Malabar shareholders will receive 0.5 New Hope shares for each Malabar share held, implying a value of A$2.92 per Malabar share based on New Hope's closing price on October 16.
The deal values the unlisted coal miner at about A$1.8-billion on an equity basis and about A$2.4 billion including debt.
New Hope, which already owns about 26% of Malabar, said the deal would create a combined group with a pro forma market capitalisation of about A$6.3-billion ($4.39-billion) and a pathway to roughly 19-million tonnes per annum of saleable coal production.
Upon completion, existing New Hope shareholders will own about 79% of the combined group, while Malabar shareholders other than New Hope will hold the remaining 21%.
The deal gives New Hope full ownership of the Maxwell underground mine in New South Wales' Hunter Valley, which began longwall production in April and is targeting up to 5.5-million tonnes of annual saleable coal production once expanded.
The boards of both companies unanimously support the transaction. Malabar directors have recommended that shareholders vote in favour of the scheme, subject to customary conditions.
The scheme is expected to be implemented by March 2027, subject to shareholder, court and regulatory approvals.
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