update on sale of its international assets

Registered Office: 17 Lowry Street, PO Box 47, Ipswich, Queensland 4305 Australia
Website: www.newhopecoal.com.au
ABN 38 010 653 844
Contact
Phone: +61 7 3810 0500
Fax: +61 7 3810 0555
Email: [email protected]
8 February 2005
Company Announcement
Further to its announcement on 7 January 2005, the Board of New Hope Corporation
Limited (“New Hope” or the “Company”) today announced that it has entered into a
Conditional Sale and Purchase Agreement for the sale of its International assets.
Key details of the transaction include:
• the sale of New Hope’s 40.83% interest in the Adaro mine and coal trading
business; and
• the sale of New Hope’s 50% interest in the Indonesia Bulk Terminal (“IBT”).
Collectively the Adaro mine, coal trading business and IBT are referred to below as
the “International Coal Assets”.
New Hope has been a long term investor in the Indonesian coal industry through its
interests detailed above. The Company produces thermal coal from its mines in
Indonesia’s South Kalimantan Province and markets it under the ‘envirocoal’ brand.
New Hope expects to receive approximately US$378 million (~ A$490 million*) for its
interest on completion of the transaction.
The transaction is subject to a number of conditions including completion of
agreements with other vendors of the International Coal Assets, any necessary
regulatory approvals and as the International Coal Assets represents a major
undertaking of the Company, New Hope shareholder approval under Chapter 11 of
ASX Listing Rules.
The Purchaser of the assets is a consortium consisting of Mr. T.P. Rachmat, Mr.
Edwin Soeryadjaya, Mr. Benny Subianto and Mr. Garibaldi Boy Thohir, financed by a
combination of equity financing from Temasek Holdings and Noonday Asset
Management as investment manager of the Farallon Funds, and debt financing from
a syndication of commercial lenders under the coordination of Temasek and
Noonday.
The Board of New Hope will advise further details of the transaction in the
Explanatory Memorandum which will accompany the notice of meeting to be sent to
Page 2 of 2
shareholders for approval of the transaction. The Board of New Hope expects that
this will occur in the next few weeks.
For further information, please contact:
Robert Millner: Chairman, New Hope Corporation Limited (02) 9232 7166
Geoffrey Hill: Managing Director, Pitt Capital Partners (02) 9210 7000
* Based on an exchange rate of AUD/USD - 0.7717 as at 7 February 2005.