Key highlights

  • New Hope Corporation Ltd (ASX:NHC) shares were down 1.64% at $6.01 during the trading session on 22 October 2026, while the S&P/ASX 200 Energy [XEJ] index was lower by 2.27%.
  • New Hope entered a binding Scheme Implementation Deed on 19 October 2026 to acquire the Malabar shares it does not already own.
  • Malabar shareholders would receive 0.500 New Hope shares per Malabar share, with existing New Hope holders owning about 79% of the combined group.

During the trading session on 22 October 2026, New Hope Corporation Ltd (ASX:NHC) was priced at $6.01, down 1.64%. The S&P/ASX 200 Energy [XEJ] stood at 10,966.10 (−2.27%, −254.40 points) and the S&P/ASX 200 [XJO] at 8,789.50 (−0.47%, −41.80 points) at 12:40 pm GMT+11. In oil markets, crude prices climbed on Thursday after further Houthi attacks inside Saudi Arabia led the United States to instruct some diplomats and family members to depart its missions in the kingdom. New Hope is an Australian coal producer whose operations include the Bengalla Mine in New South Wales. New Hope entered a binding Scheme Implementation Deed on 19 October 2026 to acquire the Malabar shares it does not already own.

About New Hope Corporation Ltd: business overview

New Hope Corporation Limited is an Australian coal producer and one of the ASX-listed participants in the thermal coal sector. Its operations include the Bengalla Mine near Muswellbrook in the Upper Hunter region of New South Wales. New Hope currently holds a relevant interest of approximately 26% in Malabar Resources Limited, an unlisted public company that owns the Maxwell Underground Mine.

Terms of the proposed scheme

In a release dated 19 October 2026, New Hope and Malabar announced a binding Scheme Implementation Deed under which New Hope would acquire all Malabar shares it does not already own through a court-approved scheme of arrangement. Malabar shareholders other than New Hope would receive 0.500 New Hope ordinary shares for each Malabar share, equivalent to about 227.8 million New Hope shares.

Based on New Hope’s last closing price of $5.84 on 16 October 2026, the consideration implies a value of $2.92 per Malabar share, an equity value of about $1.8 billion for 100% of Malabar on a fully diluted basis and an implied enterprise value of about $2.4 billion. The release noted Malabar net debt of approximately $627 million as at 30 June 2026 and that the implied value will vary with New Hope’s share price.

Combined group and ownership

Following implementation, existing New Hope shareholders would own about 79% of the combined group and Malabar shareholders other than New Hope about 21%. On a 100% basis, Malabar would represent about 29% of the combined group. The companies cite a pro forma market capitalisation of about $6.3 billion and a pathway to approximately 19 Mtpa of saleable production.

The boards of both companies unanimously support the transaction, and the Malabar board unanimously supports that Malabar shareholders vote in favour, subject to customary qualifications. Two Malabar nominees would join the New Hope board on implementation.

Maxwell Mine and funding approach

The transaction would give New Hope full ownership of the Maxwell Mine, which commenced longwall production in April 2026 and is targeting up to 5.5 Mtpa of saleable production once the longwall is expanded. The all-scrip structure is described in the release as preserving New Hope’s balance sheet and capacity for shareholder returns. After implementation, the combined group intends to seek to refinance Malabar’s existing debt facilities with the objective of reducing funding costs.

Timetable and conditions

The scheme is expected to be implemented by March 2027, subject to Malabar shareholder approval, Court approval, regulatory approvals and other customary conditions. The number of New Hope shares per Malabar share is subject to adjustments for New Hope dividends, with specifics to be outlined in the Scheme Booklet. An investor and analyst webcast was scheduled for 11:00am AEDT on the day of the announcement.

Related sector context

Coal producers are influenced by thermal and metallurgical coal prices, production and sales volumes, unit costs, the Australian dollar and approvals for mine plans and acquisitions. On 22 October 2026, the S&P/ASX 200 Energy [XEJ] index was at 10,966.10, lower by 2.27%, and crude prices were reported higher on Middle East developments. Coal companies often report production, price realisations and costs in quarterly or annual updates, and corporate activity in the sector has included acquisitions and mergers.

Risks to weigh in

The scheme remains conditional on shareholder, Court and regulatory approvals, and its implied value varies with New Hope’s share price. Malabar carries net debt of about $627 million, and the Maxwell Mine is a developing operation whose longwall expansion is still to occur. Integration, refinancing outcomes, coal price movements and the issue of about 227.8 million new shares are further factors that can affect results for the combined group.

Catalysts on watch

Milestones include release of the Scheme Booklet, the Malabar shareholder meeting and Court process, regulatory approvals, expected implementation by March 2027, any refinancing of Malabar debt, and progress on the Maxwell longwall expansion toward 5.5 Mtpa.

Closing perspective

The 19 October 2026 announcement set out the exchange ratio, ownership split, funding structure and timetable for the proposed combination. Further details are due in the Scheme Booklet as the approval process advances.