Aussie firm to list New Hope
Aussie firm to list New Hope
Dow Jones Sydney
Australia's Washington H. Soul Pattinson & Co. is preparing to list its New Hope Corp. subsidiary on the Australian Stock Exchange, giving investors a more direct route into a massive Indonesian coal mine.
But unlike last week's shake-up at PT Kaltim and Rio Tinto PLC, Soul Pattinson is a Western investor keen Prima Coal, allowing the exit of Britain's BP PLC to retain its exposure to Indonesia's coal sector.
"We are long-term investors," said David Fairfull, a non- executive director of the Sydney-based investment concern.
The decision to list New Hope is part of a broader strategy by Soul Pattinson to have its major investments "in the public arena," he said.
Soul Pattinson owns 69.34 percent of New Hope.
As a result of the New Hope listing, which will raise up to A$10 million, the stake held by Soul Pattinson, and its associate Brickworks Ltd., could be watered down to 64 percent. But there are no plans to reduce that stake any further.
New Hope is expected to have a market capitalization of around A$280 million upon listing, which is scheduled for September.
The company's major asset is a 40.83 percent stake in PT Adaro Indonesia, which owns and operates the largest open cut coal mine in terms of marketable coal production in the Southern Hemisphere.
Adaro has been steadily increasing production since the start of operations in 1991.
In 2002, it produced 20.8 million metric tons of coal and sold 21.2 million tons, trademarked Envirocoal.
New Hope's fellow investors in Adaro include PT Asminco Bara Utama. Another Indonesian investor is PT Harapan Insani Indotama, a company owned by Hashim Djojohadikusumo, a prominent businessman with connections to former President Soeharto.
Harapan Insani Indotama bought some of New Hope's equity in Adaro in 2001, helping New Hope comply with restrictions on foreign investment.
In addition to the Indonesian mine operation, New Hope has coal-mining interests in Australia and port assets in both countries.
Overall, Indonesia accounts for about 65 percent of New Hope's business and Australia 35 percent, said Fairfull.