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Noble Group

Oct 1 close: S$1.285

Standard Chartered, Sept 30

FOLLOWING rapidly from the Ecuador flow/funding and China Investment Corp (CIC) placement news flow, Noble announced the early closure of the COFCO-Noble Agriculture joint venture on Sept 30, 2014.

This is a milestone event, in our opinion. While we understand there are follow-on placement concerns (CIC is subject to a 90-day lock-up), we believe the negative share price reaction to the placement is overdone. The placement of 300 million shares was completed at S$1.32 each, according to Bloomberg. This represents a 5.4 per cent discount, while the share price is down 8 per cent today since trading started, despite the closure announcement....

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