Transaction Overview
Transaction
Sale of New Hope’s New Saraji Coal Project to BMA
Date
July 2008
Deal Value
$2.45 billion
PCP Role
Financial Adviser to New Hope
Sale of New Saraji Coal Project
Transaction
Sale of New Hope Corporation Limited’s New Saraji Coal Project (“New Saraji”) to BHP Billiton Mitsubishi Alliance (“BMA”) for $2.45 billion.

Scope of Advisory Services
New Hope engaged Pitt Capital Partners (“PCP”) as its sole financial advisor to provide strategic advice on how to create value for its New Saraji Coal Project.

Process
New Hope owned New Saraji, a coking coal deposit in Queensland. New Saraji was an exploration asset that was approaching its development phase and required significant capital expenditure to develop the project into an operating mine.  PCP recommended running a multi-stage global process to find strategic partners to realise value for New Saraji. A large number of proposals were received ranging from minority position joint ventures to acquisitions of 100% of New Saraji. PCP provided analysis on each of the varying proposals and provided strategic advice to the board of New Hope on how to maximise value for New Hope shareholders from New Saraji. PCP co-ordinated the due diligence process with a large number of parties and formulated tactics and strategies to maximise the outcome for New Hope shareholders.

Outcome
PCP achieved a price for New Saraji of $2.45 billion through the sale of 100% of the project to BMA. This result was significantly above historical market transactions and more than double the average broker valuation for the asset at that time. The sale of New Saraji has created significant value for New Hope shareholders through the distribution of special dividends, asset acquisitions and relative share price stability in volatile times due to the company’s significant cash backing.