Key Highlights

  • New Hope (ASX:NHC) closed at $6.07, down 0.49%, on 26 October 2026.
  • Malabar shareholders will receive 0.500 New Hope shares per Malabar share, implying $2.92 per share on 16 October prices.
  • Existing New Hope shareholders would own about 79% of the combined group, with implementation expected by March 2027.

New Hope Corporation Ltd (ASX:NHC) closed at $6.07, down 0.49%, in the Trading session on 26 October 2026, while the S&P/ASX 200 closed at 8,809.9, up 0.17%, and the S&P/ASX 200 Energy index gained 0.92%. New Hope is a Brisbane-based coal producer whose operations include the Bengalla mine in New South Wales.

Scheme Announced on 19 October 2026

New Hope and Malabar Resources entered a binding Scheme Implementation Deed under which New Hope will acquire all Malabar shares it does not already own, through a court-approved scheme. New Hope holds a relevant interest of about 26% in Malabar, an unlisted public company. Malabar shareholders other than New Hope will receive 0.500 New Hope shares for each Malabar share, about 227.8 million New Hope shares in total.

Based on New Hope's last closing price of $5.84 on 16 October 2026, the consideration implies $2.92 per Malabar share, an Equity value for 100% of Malabar of about $1.8 billion on a fully diluted basis and an implied Enterprise value of about $2.4 billion. The all-scrip structure is described as preserving New Hope's Balance Sheet and capacity for Shareholder returns.

Under the scheme, Malabar would become a Wholly Owned Subsidiary of New Hope, and the transaction is structured under Part 5.1 of the Corporations Act 2001. The release states New Hope's last closing price of $5.84 on 16 October is the reference for the implied value, and that the implied enterprise value of about $2.4 billion is calculated on the basis set out in the release's footnotes.

Combined Group and Approvals

Existing New Hope shareholders would own about 79% of the combined group and other Malabar shareholders about 21%; on a 100% basis Malabar represents about 29%. The combined group would have a pro forma Market Capitalisation of about $6.3 billion and a pathway to about 19Mtpa of saleable production. Two Malabar nominees would join the New Hope board on implementation.

The boards of both companies unanimously support the transaction, and Malabar's board unanimously recommends that shareholders vote in favour, subject to customary qualifications. Implementation is expected by March 2027, subject to Malabar shareholder, court and regulatory approvals and other conditions.

The transaction summary says the combined group would hold a substantial resource base, and that New Hope would gain full ownership of the Maxwell Mine, which sits in the Upper Hunter precinct near Muswellbrook. An investor and analyst webcast was held at 11:00am AEDT on 19 October. Malabar nominees Wayne Seabrook and Tony Haggarty would join the New Hope board on implementation to provide continuity for the Maxwell Mine.

The Maxwell Mine

Malabar owns the Maxwell Underground Mine near Muswellbrook in the Upper Hunter, close to New Hope's Bengalla mine. It commenced longwall production in April 2026 and targets up to 5.5Mtpa of saleable production once the longwall is expanded, supported by long-dated approvals and adjoining resources.

About New Hope

New Hope Corporation Limited (ABN 38 010 653 844) produces and sells thermal coal and holds interests in other energy and related businesses. Under the scheme it would take full ownership of the Maxwell Mine.

Risks and Catalysts on Watch

The scheme requires Malabar shareholder approval, court approval and regulatory clearances, and the consideration is in New Hope shares, so its implied value changes with the New Hope share price. Implementation is targeted for March 2027.

Wrapping Up

New Hope has agreed a share-based combination with Malabar, with a 0.500 exchange ratio and a March 2027 implementation target. The shares closed down 0.49% on 26 October.