Japan's Mitsubishi Materials Corp <5711.T> has sold its stake in Australian coal producer New Hope Corp <NHC.AX> for A$157.6 million ($104.00 million), cashing out after more than 30 years, as part of a realignment of its shareholding portfolio.
A Mitsubishi Materials spokesman said the company was in the process of selling down its 11.21% stake in the miner. New Hope's shares fell 14.3% on Friday to close at A$1.60.
Thermal coal is used to produce energy as well as to make cement. Global institutional investors have been ramping up pressure on companies to exit the emissions-heavy commodity on climate change concerns.
Mitsubishi Materials, Japan's third-biggest copper smelter, also produces cement, among other businesses.
New Hope is one of Mitsubishi's providers of thermal coal as fuel for its cement plants and will continue to do so even after the share sale, the spokesman said. The sale was not based on any specific policy on thermal coal, he added.
A person who saw the details of the sale, but declined to be named due to company policy told Reuters that Mitsubishi Materials had sold its entire stake overnight.
The deal, arranged by JP Morgan, was for a block trade of 93.24 million shares and was offered on Thursday before being filled at A$1.69 on Friday before market open, he said. Reuters data shows that equates to Mitsubishi Materials' full stake.
The largest shareholder of New Hope is Washington H Soul Pattinson, holding 49.98% of the company. A spokesman for New Hope declined to comment.
Mitsubishi Corp <8058.T>, Japan's biggest trading house and a separate company, 14 months ago pledged to sell out of its stakes in two Australian thermal coal mines amid growing pressure from environmental activists.
(Reporting by Yuka Obayashi in Tokyo and Melanie Burton in Melbourne; Editing by Christian Schmollinger and Shounak Dasgupta)
