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.