New Hope Corporation (ASX: NHC) – New Hope Combines with Malabar

New Hope Corporation has committed to acquiring the remaining 74 percent of Malabar Resources it does not already own through a recommended scheme of arrangement, creating an integrated coal producer with pro forma market capitalisation of approximately $6.3 billion. The deal, which pairs New Hope’s established open-cut operations with Malabar’s underground Maxwell Mine, is expected to close by March 2027 pending shareholder and court approvals.

Malabar shareholders will receive 0.500 New Hope shares for each Malabar share held, translating to $2.92 per share based on New Hope’s closing price of $5.84 on 16 October 2026. The equity value for 100 percent of Malabar is approximately $1.8 billion on a fully diluted basis, with an implied enterprise value of $2.4 billion accounting for Malabar’s net debt of approximately $627 million. The all-scrip structure preserves New Hope’s strong balance sheet and its capacity to continue delivering existing shareholder returns.

The Maxwell Mine commenced longwall production in April 2026 and is targeting up to 5.5 megaton per annum of saleable production once the longwall face expands from its current 145m to 300m. The operation sits adjacent to New Hope’s Bengalla Mine in the Upper Hunter Valley, positioning the combined entity to pursue regional synergies across logistics, blending, marketing and procurement. Management identified multiple value creation levers across financing, where the larger combined group is expected to access domestic and international capital markets at lower cost than Malabar could independently.

Both boards unanimously support the transaction and recommend Malabar shareholders vote in favour. Malabar directors excluding New Hope nominee Rob Bishop collectively hold approximately 13 percent of Malabar’s shares and intend to vote those holdings in support. Two Malabar directors, Wayne Seabrook and Tony Haggarty, will join the New Hope Board on implementation, bringing underground mining expertise and continuity of Maxwell Mine knowledge into the combined group’s governance.

The scheme is conditional on customary regulatory approvals, including from ASIC and the ASX, as well as approval from Japan’s Fair Trade Commission. Independent Expert confirmation that the scheme is in Malabar shareholders’ interests is also required. The Scheme Meeting is expected in January or February 2027, with implementation targeted for February or March 2027 subject to court availability.

Investors in New Hope should track progress toward the Scheme Meeting, with particular attention to any competing proposals or regulatory developments that might delay or impede the February to March 2027 implementation window. The Maxwell Mine’s ability to ramp toward its targeted 5.5Mtpa production rate and the realisation of identified cost and capital synergies will determine whether the transaction proves accretive as management suggests. The announcement is price sensitive and has been flagged as material by the ASX.

View the full ASX announcement (PDF)

About New Hope Corporation Limited (ASX: NHC)

New Hope Corporation is an Australian thermal coal miner operating the 100% owned New Acland coal mine in Queensland and the 80% owned Bengalla coal mine in New South Wales. The company sells the majority of its thermal coal production to seaborne export markets throughout Asia, and also engages in port handling, logistics, oil and gas development and production, and agricultural operations.