Noble appoints Provenance as independent adviser on restructuring plan

Published Thu, May 10, 2018 · 05:39 AM

NOBLE Group has appointed Provenance Capital as an independent financial adviser to give an opinion on its proposed restructuring plan for shareholders, the commodity trader announced on Thursday.

The scope of the adviser's work will include looking at whether the outcome of the restructuring, including the resultant allocation of shares in a restructured Noble, is fair and reasonable, and whether it may be prejudicial to the interest of shareholders.

The appointment brings Noble into compliance with a March 8 notice by the Singapore Exchange (SGX) requiring the company to appoint an independent financial adviser with relevant expertise and which was acceptable to the exchange to review the restructuring proposal.

Noble needs its shareholders to approve of any restructuring plan with creditors in order to avert an insolvency scenario. The current version of the proposal, which will dilute existing shareholders to a 15 per cent stake of the post-restructuring business, is being challenged by Noble substantial shareholder Goldilocks Investment Co, which holds an 8.1 per cent stake.

In response, Abu Dhabi's Goldilocks Investment Company said it continues to hold that investors need to be treated fairly.

"We note that Noble has appointed an IFA, two months after the regulator requested that they do so. It is important that the terms of this engagement be made available to SGX and all shareholders; Goldilocks wants the IFA scope to be substantive as opposed to predecessors' exercise or a rubber stamping of findings made by others.

"We continue to seek meaningful engagement and disclosure from Noble management, so that we can work together for the benefit of all Noble stakeholders. Goldilocks was forced to file legal actions given its disappointment with Noble management and its reactions to Goldilocks' requests."

Goldilocks is a fund managed by ADCM Altus Investment Management, an indirect subsidiary of Abu Dhabi Financial Group. It is also a shareholder in Noble.