New Hope Corporation Ltd. and Malabar Resources Ltd. have agreed to merge, creating a combined group with an estimated market capitalisation of AU$6.3 billion and better positioned as a premier coal producer.
The two companies entered into a binding scheme implementation deed, under which New Hope will acquire all shares in Malabar that it does not already own.
Under the agreement, unlisted Malabar shareholders will receive 0.500 new New Hope ordinary shares for every Malabar share held.
Based on New Hope’s closing price of AU$5.84 on 16 October, the offer values Malabar’s equity at approximately AU$1.8 billion on a fully diluted basis, with an implied enterprise value of AU$2.4 billion.
Following implementation, existing New Hope shareholders will own roughly 79 per cent of the merged entity, while Malabar shareholders will hold approximately 21 per cent.
The transaction gives New Hope 100 per cent ownership of Malabar’s Maxwell Underground Mine in the Upper Hunter Valley, located near New Hope’s Bengalla operations.
Maxwell commenced longwall production in April 2026 and is targeting up to 5.5 million tonnes per annum of saleable high-quality metallurgical and thermal coal, expanding the combined group’s total production pathway toward 19 million tonnes per annum.
New Hope CEO Rob Bishop said the deal provides a compelling, on-strategy expansion.
“This transaction provides a clear pathway to unlock the full value of the Maxwell Mine for both shareholder groups,” Bishop said.
“The combination strengthens our production platform, enhances future growth opportunities and creates an opportunity to realise synergies in operations, logistics, financing, marketing and corporate functions.”
Malabar Executive Chairman Wayne Seabrook, who will join the New Hope Board alongside Tony Haggarty upon completion, noted the scheme provides liquidity and ongoing exposure to Maxwell’s growth.
“The combined group will have the scale, financial capacity and complementary capabilities to advance Maxwell, pursue broader opportunities in the Upper Hunter and create value for both shareholder groups, while preserving Malabar’s underground mining capability,” Seabrook said.
Unanimously supported by the boards of both companies, the transaction is subject to Malabar shareholder, court, and regulatory approvals. The scheme is expected to be implemented by March 2027.
