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Is Cofco deal short-changing Noble shareholders?

Angela Tan
Published Wed, Apr 9, 2014 · 10:00 PM
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LAST week, Noble Group said it was selling a 51 per cent stake in its agricultural business to China's Cofco Corp for an initial US$1.5 billion. The final price will be equivalent to 1.15 times the 2014 book value of Noble's agricultural business. Based on Noble Agri's audited book value of US$2.8 billion for FY2013, the deal values it at US$3.22 billion.

The prospect of a deal with Cofco has fuelled Noble's share price by more than 20 per cent since the start of the year. Noble shares gained 10 per cent in the two day…

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