COMMODITY trader Noble Group said on Monday it expects the sale and disposal of its wholly-owned Noble Americas Energy Solutions (NAES) to be completed in the second half of 2016.
Noble has appointed Morgan Stanley and HSBC to advise on the disposal.
The divestment was first announced on May 30 along with the resignation of Yusuf Alireza from his position as the company's chief executive. Noble subsequently announced on June 4, its founder, Richard Elman, would step down as executive chairman.
The sale of NAES is in addition to the company’s plan to raise US$1 billion to shore up its balance sheet by redeploying capital from low-return businesses, non-core asset sales and other capital-raising initiatives.
NAES buys energy wholesale and repackages it into products for commercial and industrial customers and now services 1,500 customers.
Noble said in an investor presentation last August that NAES was valued on its books at US$322 million. Comparable transactions of leading US energy C&I (commercial and industrial) customers have indicated a valuation well in excess of US$1.25 billion, Noble indicated in the August presentation.
Amendment note: A company's spokesperson clarified that the founder, Richard Elman has not exited from the company, but would step down as executive chairman. The spokesperson also clarified as a follow-up to a Bloomberg report cited by BT, that the sale of NAES will add to the projected proceeds from company's planned redeployment of capital from low-return businesses, non-core asset sales and other capital raising initiatives. Lastly, the spokesperson added that the valuation of NAES according to comparable transactions of leading US energy C&I customers is well in excess of US$1.25 billion.