New Hope shares hit near one-month high as it agrees $1.3 bln Malabar deal

New Hope Corp (ASX:NHC) shares surged to a near one-month high on Monday following the Australian coal producer's agreement to acquire the remaining stake in Malabar Resources it does not already own. This move will secure full control of the Maxwell underground mine and expand New Hope's production base. The binding agreement sees Malabar shareholders, excluding New Hope, receive 0.5 New Hope shares for each share held, implying A$2.92 per Malabar share based on New Hope's October 16 closing price of A$5.84.

The transaction values Malabar's equity at approximately A$1.8 billion on a fully diluted basis, with an enterprise value of around A$2.4 billion.

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