Key highlights

  • New Hope Corporation Ltd (ASX:NHC) shares closed at $6.18, up 5.82%, on 19 October 2026.
  • A 19 October 2026 release covers a binding Scheme Implementation Deed for New Hope to acquire the Malabar shares it does not own, at 0.500 New Hope shares per Malabar share.
  • The scheme is expected to be implemented by March 2027, subject to approvals.

New Hope Corporation Ltd (ASX:NHC) is an Australian coal producer that operates the Bengalla Mine in New South Wales and other assets. On 19 October 2026, the stock finished the session at $6.18, up 5.82%. In an ASX release dated the same day, New Hope and Malabar Resources Limited said they had signed a binding Scheme Implementation Deed under which New Hope would acquire all Malabar shares it does not already own. This article does not attribute the day’s price change to the announcement.

Scheme terms

Malabar shareholders, other than New Hope, would receive 0.500 New Hope ordinary shares for each Malabar share, about 227.8 million New Hope shares in total. Based on New Hope’s $5.84 close on 16 October 2026, that implies $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. New Hope currently holds a relevant interest of about 26% in Malabar.

After implementation, existing New Hope shareholders would own about 79% of the combined group and Malabar shareholders other than New Hope about 21%. The release gives a pro forma Market Capitalisation of about $6.3 billion and a pathway to about 19 Mtpa of saleable production. The all-scrip structure is described as preserving New Hope’s balance sheet, and after implementation the combined group would seek to refinance Malabar’s Debt facilities.

Maxwell Mine and governance

Malabar, an unlisted public company, owns the Maxwell Underground Mine near Muswellbrook in the Upper Hunter, close to New Hope’s Bengalla Mine. Maxwell began longwall production in April 2026 and targets up to 5.5 Mtpa of saleable production once the longwall is expanded. Two Malabar nominees would join the New Hope board on implementation. Both boards unanimously support the transaction, and the Malabar board unanimously supports a vote in favour of the scheme, subject to customary qualifications.

Timetable

The scheme is expected to be implemented by March 2027, subject to Malabar Shareholder approval, Court and regulatory approvals and other customary conditions. An investor and analyst webcast was scheduled for 11:00am AEDT on the day of the release.

The release says the transaction gives New Hope full ownership of the Maxwell Mine, which is supported by long-dated approvals, existing infrastructure and adjoining resources. It describes the combined group as having a substantial resource base and a pathway to about 19 Mtpa of saleable production, and it notes that Malabar shareholders would receive liquid ASX-listed shares while keeping exposure to Maxwell.

Malabar is an unlisted public company, so its shareholders currently hold shares that do not trade on an exchange. The scheme consideration of about 227.8 million New Hope shares is the number of new shares to be issued to Malabar holders other than New Hope. The release also notes that the all-scrip structure keeps New Hope’s cash intact while the combined group looks to refinance Malabar’s debt after implementation.

Sector backdrop

Across the market on the day, the S&P/ASX 200 (ASX: XJO) stood at 8,845.70 at 4:25 pm (GMT+11) on 19 October 2026, up 0.44%, or 39.00 points, for the day. On the sector map, Energy rose 2.16%, the largest gain among the labelled segments. The map shows that Energy rose 2.16%, Industrials 0.93%, Financials 0.85%, Utilities 0.38% and Consumer Staples 0.25%, and that Information Technology fell 1.35%, A-REIT 0.34%, Consumer Discretionary 0.18%, Telecommunication Services 0.16% and Health Care 0.13%.

Risks shareholders should weigh

The scheme is conditional on Malabar shareholder, Court and regulatory approvals and could change or lapse. Because the consideration is paid in New Hope shares, the value delivered to Malabar holders will move with New Hope’s share price, and existing New Hope holders will be diluted to about 79% of the combined group.

Maxwell is a developing underground operation that only started longwall production in April 2026, and its expansion to 5.5 Mtpa is a target. The combined group would take on Malabar’s debt facilities, which it plans to refinance. Coal prices and operating conditions affect the combined group’s earnings.

What’s next

Next steps include preparation of scheme documents, Malabar shareholder and Court processes, regulatory approvals and, if all conditions are met, implementation by March 2027.