Washington H. Soul Pattinson and Company Limited (Soul Pattinson) today lodged a prosrectus with the Australian Securities and investments Commission (ASIC) for a compliance listing of its 69.34% owned subsidiary, New Hope Corporation Limited (New Hope Corporation) on the Australian Stock Exchange.
New Hope Corporation is a growth orientated and successful Australian-based international coal enterprise with interests in mining, logistics, and infrastructure operations in Australia and Indonesia.
The prospectus states that:
Soul Pattinson?s board has agreed to pay existing shareholders a fully franked special dividend of 5 cents per share in the form of one New Hope Corporation share for each 8 Soul Pattinson shares held at 7 August 2003 (subject to rounding of fractional entitlements to the nearest whole number);
New Hope Corporation will give shareholders who receive the special dividend and who then hold less than 5,000 shares the opportunity to increase their shareholding to 5,000 shares by subscribing for additional shares at 40 cents each;
New Hope Corporation will issue each shareholder one option -at no cost- for each 10 shares held after the close of the top-up offer. The exercise price for each option will be 45 cents. These options will also be listed on ASX;
The market capitalisation of New Hope Corporation at the offer price will be $286 million, assuming all eligible shareholders subscribe for all available shares.
Key dates
Record date for special dividend: 7 August 2003
Payment of special dividend to existing Soul Pattinson shareholders: 14 August 2003
Top-up offer opens: 15 August 2003
Top-up offer closing date: 5 September 2003
Expected despatch of holding statements: 12 September 2003
Expected date of quotation of shares and options on ASX: 16 September 2003
Soul Pattinson?s chairman Mr Robert Millner said the compliance listing of New Hope Corporation offers an excellent opportunity for Soul Pattinson shareholders. ?New Hope Corporation has good potential, and Soul Pattinson and its associate, Brickworks Limited, will retain 64.5% of the company?s shares,? he said.
'We have a successful track record of unlocking value for our shareholders. This is the third company we have spun out of Soul Pattinson. Both our earlier listings, SP Telecommunications Limited and Clover Corporation Limited, have achieved significant increases in market capitalisation since listing on the ASX.'
New Hope Corporation ? company background
In the 2002 financial year, New Hope Corporation earned a net profit alter tax of $32.3 million (adjusted), which is forecast to increase to $36.3 million, and (on a pro-forma basis) to $39.2 million, for the 2003 financial year;
New Hope Corporation produces thermal coal from three mines in southeast Queensland ? New Acland, New Oakleigh and Jeebropilly;
Through its 40.83% owned associate, PT Adaro Indonesia (Adaro), the company mines sub-bituminous thermal coal at the Tutupan deposit in the South Kalimantan Province of Indonesia. This is the largest open cut coal mine in terms of marketable coal production in the Southern Hemisphere;
In calendar 2002, New Hope Corporation, together with 100% of Adaro, had aggregate marketable coal production of 23.5 Mt (million tonnes) and has coal reserves of 640 Mt (Australia) and 14821 Mt (Indonesia 100% of Adaro);
New Hope Corporation markets two types of coal internationally: Adaro?s envirocoal ?the largest selling brand of raw coal and the cleanest raw coal in the world. envirocoal has ultra low sulphur, ash and nitrogen qualities, providing considerable economic and environmental benefits to users. The company also markets Australian-branded Tivoli ?thermal coal which has excellent combustion and environmental performance in power stations;
Approximately 60% of New Hope Corporation?s coal is exported to the global market and 40% is delivered to domestic customers in Australia and Indonesia. Tivoli is exported primarily to Japan and envirocoal is sold to 15 countries
New Hope Corporation?s competitive advantages as a substantial independent coal group include a vertically-integrated model from exploration and mining through to marketing and delivery to customers. The company holds 50% of Queensland Bulk Handling, which operates the 5 million tonnes per annum capacity coal export terminal at the Port of Brisbane. New Hope Corporation also owns 50% of PT Indonesia Bulk Terminal which operates a 10 million tonne per annum capacity deep water coal port at Pulau Laut, servicing Adam and other producers in East Kalimantan;
New Hope Corporation has a proven, experienced, management team with strong skills in exploration, mining, logistics, infrastructure and marketing.
Mr Graeme Robertson, managing director of New Hope Corporation, said ?New Hope Corporation has significant growth potential. The acquisition, exploration and development team continues to investigate new coal projects in Australia and overseas. We aim to identify and develop niche projects at low capital costs utilising our extensive in-house expertise.
?New Hope Corporation is also targeting coking coal opportunities which can be acquired or developed at reasonable cost. The company?s objective is to increase its Australian production through existing resource development, exploration and acquisitions.
?In Indonesia, Adaro could increase production to 24 million tonnes per annum with relatively modest capital expenditure and has other growth prospects. Adaro is actively involved in community development in Indonesia and has a stable and productive workforce, which is committed to growing the company?s operations in Kalimantan,? Mr Robertson said.
ABN AMRO Morgans Limited and Citigroup Global Markets Australia Pty Limited are Sponsoring Brokers to New Hope Corporation and Republic Securities Limited is acting as financial adviser.
FURTHER INFORMATION
Robert Millner, chairman, New Hope Corporation Limited - Ph: 0408 414 295
David Fairfull, non executive director, New Hope Corporation Limited - Ph: 0411 827 777
Graeme Robertson, managing director, New Hope Corporation Limited - Ph: 0011 6221 521 1255
Released through:
Financial & Corporate Relations, Anthony Tregoning or Ben Jarvis ? (612) 9235 1666 or 0413 150448
The prospectus can be viewed at www.asic.gov.au or www.newhopecoal.com.au
