ZCZC
BCN-25
SINGAPORE-HONGKONG-NOBLE-COMMODITIES-COMPANY
Noble Group shares soar after deal with key investor
SINGAPORE, June 20, 2018 (BSS/AFP) – Noble Group shares surged more than 50
percent Wednesday after the embattled commodities trader sealed a deal with a
major investor, paving the way for a debt restructuring.
The former stock market darling had been teetering on the brink of collapse
after being hammered by plunging commodity prices, a ratings downgrade and
allegations of irregular accounting practices.
It sold off assets and embarked on a US$3.5 billion debt restructuring, but
the plan ran into opposition from a major shareholder, Goldilocks Investment
Co.
Noble suspended trading in its shares on the Singapore Exchange on Monday
as it sought to negotiate a way out.
Goldilocks agreed to back a revised restructuring plan which raises
shareholders’ equity in the company to 20 percent, up from 15 percent.
Goldilocks also gets to nominate a representative to the Noble board of
directors.
Abu Dhabi Financial Group, with which Goldilocks is affiliated, will also
form a strategic partnership with Noble to explore opportunities in the
Middle East.
Trading resumed Wednesday after the agreement was reached, with Noble
shares soaring as much as 57 percent to 8.5 Singapore cents. The stock
remains 60 lower than last year.
Goldilocks currently holds about 8.1 percent of Noble’s shares.
“By reaching agreement with Goldilocks, the company is now able to move
into the final stages of its restructuring,” Noble chairman Paul Brough said
in a statement.
Noble, which is headquartered in Hong Kong and listed in Singapore,
reported a massive net loss of almost US$5 billion last year despite selling
many of its assets in a bid to ensure survival.
BSS/AFP/HR/1135